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The dairy sector could improve its sales by US$100M if it makes a strong investment in irrigation

The dairy sector could improve its sales by US$100M if it makes a strong investment in irrigation

The incorporation of technology can increase exports by 11%, despite some temporary factors, according to a Ceres report.

He milk sector could boost its sales by more than 100 million dollars and thus increase profits by 11% exports, if you make a strong investment to boost the irrigation in the activity, according to a report prepared by Ceres.

The proposal arises to improve the productivity in the dairy industry, in the face of a series of temporary factors that have a negative impact, such as lower imports of China, he exchange delay and low prices due to lower demand globally.

Ceres proposes to use the money of the escrow of the sector, established by law from 2026 to 2036 for 50 million dollars, to shore up irrigation resources, considering that it is the best alternative to generate stability, prepare for inclement weather like new droughts and take a leap productivity necessary to overcome stagnation in production.

Beyond the million-dollar impact on placements, a high indirect impact of 133 million dollars, being the item with the greatest indirect impact. To this would be added the proposal of a repayment for productivity gains, so that the fund is maintained in the future

Improving irrigation

After a year where drought It caused the dairy industry to lose nearly 136 million dollars. Incorporating irrigation to have a forage reserve is considered by dairy producers to be the best insurance, said the Ceres report.

If the entire trust were allocated to investments of this type, nearly 11,000 hectares could be irrigated, through the purchase of irrigation equipment to create a fund of forage reserve (5 thousand hectares) that is distributed mainly among small producers who do not have access to high availability of forage and promote irrigation at the farm and multi-farm level (6 thousand), thus reaching 25% of the establishments.

Potential destinations to improve exports

The sector, which produces more than 2,000 million liters of milk per year and feeds more than 20 million people. Of the total, 70% corresponds to exports, with Brazil as the main destination, with half of the sales.

However, from Ceres they predicted that Malaysia, Philippines, United Arab Emirates and Saudi Arabia are some countries with the potential to place more sales, while their conditions of access to South Korea and Vietnam.

Another option to improve their access to markets is to define the extended Mercosur-EU Agreement and includes quotas for dairy products, as well as entry to the Trans-Pacific Agreement.

Source: Ambito

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