In the middle of a somewhat delicate moment for the dairy sectorthe cooperative Conaprole announced the extraordinary payment of $0.50 per liter for dairy farmers who have submitted during February, March and April of this year, which leads to an investment of 5 million dollars.
The announcement was issued during the Assembly of the 29 of the cooperative where it was announced that the benefit will be for producers who do not have a debt balance. However, if it is available, 40% must be allocated to the payment of that debt, while the remainder would be left for the free availability of the dairy farmers.
In this way, all producers who have sent milk during February, March and April will obtain an extraordinary payment of $0.50 per liter, which means a total investment of 5 million dollars for the cooperative. As announced by Conaprole, the money would be available in the dairy farmers’ accounts starting on the 25th of this month.
In that sense, the director of the cooperative, Daniel Laborde, He assured that it is an incentive that will be well received by producers, since it will be provided before the close of the annual fiscal year which, according to the leader, would be in balance.
More benefits
On the other hand, Laborde announced that the chance to access the retirement fund which will have the possibility of a maximum amount of 10 million dollars, while for the smallest producers it is estimated between 2 and 3 million dollars, who are the ones who suffer the most from the climate crisis caused by recent heavy rains and the drought the last year.
In addition, the president of the cooperative announced that the purchase of rations and by-products of Prolesia with the option of being able to pay them only in spring, based on those sent during June and July.
“We are taking this measure based on the fact that we understand what the reality of the producer is, he is suffering a very important financial squeeze, a very important discouragement, basically affected by a low milk production and by a climatic situation that has been punishing us, first with a dry season and then with excess rain,” explained Laborde.
Low remission expectations
Conaprole faces a significant drop in milk remission, with a result 13.5% lower than expected. However, the dairy cooperative Uruguay plans to close its annual exercise in July with balance, and that in the second semester improvements will be observed in the situation of the sector.
The dairy sector has been faltering since the drought history that the country suffered, and in recent months it was affected by the opposite phenomenon: the floods and excess water. This contributed to the milk shipment being reduced by 13.5%, according to the president of Conaprole, Gabriel Fernández, to Radio Carve. This meant, in turn, a daily decrease of 500,000 liters of milk.
“To give an idea, 500 thousand liters is almost like adding any of the second companies that may be in the Uruguay. And that also generates the problem that it is the strongest impact, since the industry is obviously affected, but in reality the most important thing is that the producer stops getting that money,” he explained.
Regarding the second half of the year, Fernández was more optimistic: the recent increases in the prices of Fonterraa key reference in the international market, They predict a possible more favorable second semester. The objective is to be able to transfer any improvement in milk price as soon as it is noticed in the markets.
The spring It could also come with good news. “Today what I can say is that we see a demanding market and that we are selling at interesting prices, which allows us to think that we are going to be able to transfer the producer a good price level,” said the president of Conaprole. Currently, the dairy cooperative pays about 40 cents per liter for milk, a historically high price.
Meanwhile, July will come with the closing of the company’s annual fiscal year, where there are also good expectations despite some challenges that have not yet been able to be overcome. “He exchange rate is going up, that for us is good news,” commented Fernández, although he admitted that there are still challenges, such as exports to Brazil detained at customs for administrative issues.
Source: Ambito
