Bolivian Dairy Producers Concede on Milk Prices Amidst Subsidy Requests
Source: dairynews.today
Bolivian dairy producers have agreed to a reduced milk price of Bs 5.16 per liter on the condition of receiving subsidized corn.
The dairy producers of Bolivia, led by Santa Cruz's Fedeple and the Chamber of Agricultural Producers of the Orient (CAO), have publicly accepted a lower price for their milk, settling for Bs 5.16 per liter instead of the Bs 6 they initially demanded.
This concession comes with the stipulation that the government supplies 1,500 tons of subsidized corn monthly. In a recent press conference, Eduardo Cirbián, President of Fedeple, emphasized the difficulty of reaching this agreement, citing the need to cut costs and potentially forego crucial farm activities such as pasture renewal and infrastructure maintenance.
The government initially validated the production cost at Bs 5.16 per liter, which pushed producers to compromise. However, industry leaders warn that continued government intervention may threaten the sustainability of the dairy sector, highlighting the closure of over 100 dairies in Santa Cruz in recent periods. The sector calls for private industry agreements free from governmental pricing regulations to overcome inflationary pressures and ensure the continued viability of Bolivian dairy production.
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