Record Milk Prices in Arauca Mark Economic Shift
Sourse: dairynews.today
For over 80 consecutive days, milk producers in Arauca, Colombia, have been receiving a record price of $2,100 per liter, a significant increase from previous rates.
The department of Arauca in eastern Colombia is experiencing an unprecedented surge in milk prices. For the first time in over 80 days, local producers are being paid $2,100 per liter of whole milk, marking a substantial 25% increase from former prices of around $1,600 per liter. This change is seen as a positive development for the local milk industry, fostering optimism about the future.
Producers attribute the rise in prices to heightened institutional demand related to the school calendar, which ensures steady milk consumption through government food programs. This stability allows industrial plants to offer better prices to producers. Furthermore, increased demand is a result of improved local negotiations, organized producers, efficient intermediaries, and a heightened awareness of the dairy sector's importance in regional economics. Arauca’s daily milk production exceeds 541,000 liters, positioning it as a crucial hub for Colombian dairy.
Despite this, farmers remain cautious, noting that the end of the school term could reduce institutional demand and, consequently, milk prices. Saida Ydaly Niño Castrillón from Aprocolpa warns that current premium prices may diminish once the school year concludes. Although the current environment presents opportunities for investment in quality improvement, there is concern that without sustained demand, these price highs might be temporary.
Producers attribute the rise in prices to heightened institutional demand related to the school calendar, which ensures steady milk consumption through government food programs. This stability allows industrial plants to offer better prices to producers. Furthermore, increased demand is a result of improved local negotiations, organized producers, efficient intermediaries, and a heightened awareness of the dairy sector's importance in regional economics. Arauca’s daily milk production exceeds 541,000 liters, positioning it as a crucial hub for Colombian dairy.
Despite this, farmers remain cautious, noting that the end of the school term could reduce institutional demand and, consequently, milk prices. Saida Ydaly Niño Castrillón from Aprocolpa warns that current premium prices may diminish once the school year concludes. Although the current environment presents opportunities for investment in quality improvement, there is concern that without sustained demand, these price highs might be temporary.
