Price Gap Widens in Colombian Dairy Industry

The disparity between what Colombian dairy farmers are paid and the price consumers pay for milk continues to widen, a trend that demands urgent intervention according to industry experts.

In the last two years alone, the price paid to milk producers plummeted by over 19%, while consumer prices rose by 12.2% during the same period, as highlighted by Óscar Cubillos in his column for CONtexto Ganadero.

The growing gap has left a mark of more than 31% in the hands of middlemen and dairy industries, raising concerns among producers and consumers alike.

The situation is compounded by declining inventory levels in the dairy sector and reduced imports due to currency exchange rates and import taxes, which have recently ceased.

With climate change adding uncertainty to weather patterns, the outlook for dairy prices remains unpredictable. Experts warn that unrestricted imports of U.S. milk, potentially without tariffs or quotas, could further challenge domestic producers.

To counter this, experts suggest focusing on breeding initiatives while reducing milk available for commercial sales, given the positive market conditions for meat both domestically and internationally.