Bolivian Industrialists Question Financing for New Dairy Fund
Bolivia’s Senate approved Bill No. 267/2025-2026 C.S. on October 15 and forwarded it to the Chamber of Deputies. The proposal would establish the “Mi Bolivia Lechera” Productive Dairy Fund under the oversight of the Ministry of Sustainable Production, Environment and Water, with PRO-BOLIVIA responsible for operational administration. The proposed fund would run for ten years.
The bill includes technical assistance and financing for dairy producers, measures to improve cattle feed, and insurance against disasters. It also covers milk collection, transport, storage, processing, industrialisation, quality and the sale of dairy products. Its scope therefore extends beyond support tied only to the price of a litre of milk.
The National Chamber of Industries, or CNI, says the proposal resembles the financing model used by the former PROLECHE fund. Hugo Siles, the organisation’s economic adviser, said the new scheme would include, among other charges, Bs 0.10 per litre of malt beer and Bs 1 per litre of pisco and whisky, alongside contributions connected with other alcoholic drinks. The Senate’s official summary confirms that the fund would have designated financing sources, but does not list product-specific amounts in its communication on the approval.
CNI president Gonzalo Morales Bersalovic said the organisation supports measures to raise milk production, improve productivity and increase domestic consumption. Its objection concerns the proposed financing burden on industries that, in the CNI’s view, have no direct productive connection with dairy farming. The chamber has proposed a technical committee involving the authorities and affected sectors to consider other sources of funding.
Bolivia previously used a similar arrangement. Law No. 204 of 2011 created the Fund to Support the Dairy Productive Complex, known as PROLECHE. It was financed through a levy on beer sales, charges on imported alcoholic beverages, payments from dairy companies and fines. Among its rates was a Bs 0.10 levy per litre on domestically produced beer. PRO-BOLIVIA continues to identify higher milk consumption, a larger domestic market and support for the dairy chain as historical objectives of the fund.
CNI has also questioned the previous scheme’s results. Figures presented by Siles indicate that PROLECHE collected about Bs 255m between 2012 and 2017, including approximately Bs 188m from the beer levy, Bs 9m from taxes on imported alcoholic drinks and Bs 56m from dairy-company contributions. Statistics cited by the chamber show average annual milk-production growth of about 0.1% between 2016 and 2024. The material released by CNI does not provide an impact assessment establishing that the fund caused this performance.
The new bill would prioritise small and medium-sized producers and address productivity, feed, collection and storage infrastructure, transport, milk quality, industrialisation and disaster insurance. The Senate’s approval does not settle the measure: deputies may approve, reject or amend it. CNI is seeking to revisit the proposed financing sources while the bill proceeds through the lower chamber.
