New Dairy Payment Regulations in Colombia for 2025

New Regulations for Milk Producers in Colombia

The Colombian Ministry of Agriculture and Rural Development has announced significant updates to the payment system for raw milk in 2025, affecting thousands of dairy producers across the country.

Impact on Dairy Producers

Starting March 1, 2025, dairy farmers in Colombia will experience changes in their payments due to new valuations for protein, fat, and total solids content in milk. These adjustments include a base price increase of 5.36% over the previous year, which industry experts say is crucial for covering rising production costs.

Price Composition and Adjustments

The resolution specifies different values based on regional production characteristics. In Region 1, for instance, the price of protein will increase from $41.02 to $43.22 per gram. Similarly, adjustments have been made for fat and total solids, marking a small relief amidst ongoing production cost challenges.

Quality Bonuses and Transportation Costs

Bonuses for hygienic quality, based on Colony Formation Units (UFC/ml), have also been revised, offering higher rewards for milk with lower bacterial counts. Transport costs remain a critical variable in the final price received by producers, with deductions varying according to distance and vehicle type.

Overall Economic Impact

According to Óscar Cubillos from Fedegán-FNG, these adjustments aim to gradually pass the increased milk prices onto consumers without causing sudden market shocks. Nonetheless, some producers, like Ricardo Arenas Ovalle, express concerns that the increase barely offsets inflationary pressures.

As experts urge for continued consumer demand to sustain market stability, the focus remains on ensuring the dairy industry's resilience in Colombia.