He dairy sector is going through a complex financial moment, caused in part by a reduction in income due to a decrease in export prices, which caused the main unions to request a meeting with the president of the Banco República (BROU), Salvador Ferrer.
According to the latest data published by the National Milk Institute (Inale) Dairy industry revenues fell by 3% year-on-year in June. This is due to a 7% decrease in export prices of products.
In this sense, the price of a liter of milk The average received by the industry was $0.64 last year, while in June this year it was $0.54.
However, the indicator of the domestic market The price of dairy milk was 0.89 dollars per litre, reflecting a 2% increase, while the average producer price was 0.39 dollars per litre. The price of dairy farms fell by 14%, while its share in the industry was 65%.
Request for help
In the midst of a complex scenario, the dairy unions They decided to request a meeting with Ferrer with the aim of advancing some type of financial assistance for the sector for those producers who send more than 3,000 liters of milk daily.
That is, those who were left out of the measure implemented in mid-May to assist small producers who send less than 3,000 liters per day.
It is necessary to remember that the unions met with the undersecretary of the Ministry of Livestock, Agriculture and Fisheries (MGAP) Juan Ignacio Buffa, with the aim of advancing in some kind of aid for those producers who were left in the middle. One of the objectives is to be able to advance in the extension of debt payment terms without applying a recategorization in the classification of debtors.
The government’s measure for small producers
In mid-May, Parliament passed a law establishing assistance to dairy sector through a non-reimbursable fund totaling 7.7 million dollars that would reach 1,600 producers who produce less than 3,000 liters of milk per day.
Law 20.273 aims to support the dairy sector, especially 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 Dairy Activity Financing and Sustainable Development Fund (FFDSAL).
In this way, the MGAP He announced that the law enables the government to provide a non-reimbursable fund to a total of approximately 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 currently active in Uruguay when compared to the records ofThe Dairy Guarantee Fund (Fogale).
The $7.7 million fund comes from Fogale, so the sector itself would be responsible for providing aid to its small producers.
Source: Ambito
