The Endangered Dairy Sector in Bolivia
Source: dairynews.today
Bolivia's dairy sector faces a crisis as prices fail to cover production costs. The CAO warns of imminent closures without price adjustments.
The Bolivian dairy sector is on the brink of collapse, warns Klaus Frerking, President of the Cámara Agropecuaria del Oriente (CAO). The stark warning comes amid ongoing disputes between dairy producers and the government over pricing. Producers are currently paid lower than the cost of production, with prices set at Bs 3.50 in Santa Cruz, Bs 3.55 in Cochabamba, and Bs 3.60 in La Paz, while production costs reach Bs 5.16 per liter.
Frerking has highlighted the dire condition of the sector, stating, "Day by day, producers are losing. They are producing at a cost higher than what they are paid, and the dairy sector cannot survive under these conditions." Roughly 100 production units have already ceased operations, forcing producers to sell their livestock to remain afloat.
Negotiations with the government have yet to yield a satisfactory result, with a proposed price increase to only Bs 4 per liter, far below the Bs 6 demanded by producers. This mismatch, along with a slow response and inflexible production cycle, threatens both the livelihood of producers and the broader food sovereignty of the country. Immediate intervention is essential to prevent further closures and sustain the industry.
Frerking has highlighted the dire condition of the sector, stating, "Day by day, producers are losing. They are producing at a cost higher than what they are paid, and the dairy sector cannot survive under these conditions." Roughly 100 production units have already ceased operations, forcing producers to sell their livestock to remain afloat.
Negotiations with the government have yet to yield a satisfactory result, with a proposed price increase to only Bs 4 per liter, far below the Bs 6 demanded by producers. This mismatch, along with a slow response and inflexible production cycle, threatens both the livelihood of producers and the broader food sovereignty of the country. Immediate intervention is essential to prevent further closures and sustain the industry.
