Mass Closure of Dairy Farms in Bolivia

The president of Fedeple, Juan Manuel Rojas, attributes the crisis to various factors discouraging production. Diesel shortages have been a major cause, directly impacting the transport of crucial inputs like soybean meal, essential for balanced feed. This scenario has brought the industry to the brink of collapse.

Besides logistical problems, the sector has faced economic challenges. The implementation of price bands and excessive government regulations over the past 18 years have made the activity less profitable for producers. The lack of favorable conditions has forced many to shut down, reflected in the drastic drop in production.

The repercussions of this crisis extend beyond the domestic market. Bolivian dairy exports have also suffered significant setbacks, falling from 95,000 liters daily to a range between 10,000 and 15,000 liters. The situation is so dire that, according to Rojas, the balanced feed plant, which supplies 78% of the country’s milk to the national industry, might halt operations soon if the diesel issue remains unresolved.

In conclusion, the dairy sector crisis in Bolivia is a clear example of how lack of governmental support and infrastructure problems can threaten the viability of an industry.