Fedegán Opposes 20% Energy Hike: A Threat to the Livestock Sector
Sourse: dairynews.today
The Colombian cattle industry has voiced significant concern over an announced 20% increase in energy tariffs, arguing that this move could directly and negatively impact production costs.
The Federation of Colombian Livestock Farmers (Fedegán) has publicly called on the National Government to reconsider the decision, asserting that the increase would burden an already economically challenged sector. High input costs are one of the primary challenges faced by Colombian farmers. Rising prices of feed, fertilizers, and other materials combined with the proposed energy hike pose a severe threat to operations. This increase would affect daily processes, from the mechanics of milking systems and milk refrigeration to machinery used in fodder processing. A 20% rise in energy costs would directly decrease profitability for producers. The impact of this measure is felt across the whole livestock sector.
The dairy industry, in particular, would experience the brunt of the consequences. Stakeholders across the chain, from small to medium producers who need to refrigerate milk for collection to large processing plants, would see elevated operational costs. The production cost rise could be transferred to end product prices, impacting consumers and ultimately affecting consumption rates. Fedegán argues that the Government's decision is a setback for productive sector support. Instead of alleviating economic burdens, the energy hike potentially threatens the viability of many livestock enterprises. The federation urges authorities to analyze the economic impact and seek alternatives that do not compromise the sustainability of an industry crucial for the country's food security and rural development. "One of the focal points of Fedegán's letter is warning about the differential treatment between sectors."
The dairy industry, in particular, would experience the brunt of the consequences. Stakeholders across the chain, from small to medium producers who need to refrigerate milk for collection to large processing plants, would see elevated operational costs. The production cost rise could be transferred to end product prices, impacting consumers and ultimately affecting consumption rates. Fedegán argues that the Government's decision is a setback for productive sector support. Instead of alleviating economic burdens, the energy hike potentially threatens the viability of many livestock enterprises. The federation urges authorities to analyze the economic impact and seek alternatives that do not compromise the sustainability of an industry crucial for the country's food security and rural development. "One of the focal points of Fedegán's letter is warning about the differential treatment between sectors."
