Law 20,273 aims to support the dairy sector, especially to those small producers who suffer from the lack of competitiveness due to the dollar and the climatic consequences: last year the drought and today the floods, through the Fund for Financing and Sustainable Development of Dairy Activity (FFDSAL).
In this way, the Ministry of Livestock, Agriculture and Fisheries (MGAP) announced that the law enables the government to provide a non-refundable fund to an approximate total of 1,600 dairy farmers who produce more than 3,000 liters per day.
The total number of producers represents a little more than half of those that are active in Uruguay today when compared with the records ofl Dairy Guarantee Fund (Fogale).
The fund of 7.7 million dollars comes from Fogale, so the same sector would be responsible for providing aid to its small producers.
How can you participate?
The conditions to access the support are not to have exceeded the production of 1,095,000 liters in the year 2023. On the other hand, they must be active until May 24 of this year and that the main income is derived from the shipment of milk. .
On the other hand, an affidavit – which is available on the official MGAP website – must be sent to the office of the Dairy Fund.
Regarding aid, for producers who have sent less than 182,500 liters in 2023 and their daily production does not exceed 500 liters, it will be $2. For those who have produced between 182,501 and 365,000 liters and their daily production is between 501 and 1000 liters, it will be $1.5.
While producers who have sent between 365,001 and 730,000 and their daily remittance is between 1,001 and 2,000, it will be $1. Finally, for the largest dairy farms that have produced between 730,001 and 1,095,000 liters and their production does not exceed 3,000 per day, it will be $0.6.
The need for irrigation
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
Source: Ambito
