The Fall of Milk Production in Uruguay: Its Impact on Local Industries
Source: dairynews.today
The decrease in milk volume has emerged as a critical issue affecting small local industries in Uruguay, leading to the closure of facilities such as the Calcar cooperative.
The persistent decline in milk production in Uruguay has become a primary source of concern for the nation's dairy sector. Both Ricardo de Izaguirre, the President of the National Institute of Milk, and Horacio Rodríguez, head of the Society of Milk Producers in Florida, agree that the reduction in milk volume significantly impacts small local industries. One of the most recent casualties is the Calcar cooperative, located in Tarariras, Colonia.
The cooperative's financial strain worsened due to delayed payments to collaborating producers, prompting many to seek feasible alternatives elsewhere.
In April 2024, a similar scenario unfolded when another plant in Carmelo ceased operations. Out of 54 facilities that supplied milk to Calcar, nearly 10 have had to shut down, underscoring the gravity of the crisis.
The National Institute of Milk (Inale) is evaluating potential solutions, including alternative milk collection tactics to ensure operations continue. De Izaguirre expressed the emotional toll of this cooperative's closure, emphasizing the importance of maintaining its commitments, although the financial difficulties eventually became unmanageable.
The lack of milk volume rather than industrial processes poses the main hurdle for these companies. In Uruguay, 75% of the milk directed to industrial plants is processed cooperatively. However, the significant drop in milk has resulted in devastating consequences for the sector. Horacio Rodríguez highlighted the precarious situation within the milk industry, where closures like Calcar signal an ongoing trend. He articulated concerns over a shift toward larger, more secure companies, revealing the financial uncertainty small producers face.
Despite the decreasing output, dairy operations continue to be profitable compared to agriculture or cattle farming. Nevertheless, the opportunity to attract new investors remains slim. As the domestic dairy market faces stiff competition due to stagnant population growth, international prospects offer a glimmer of hope for producers striving to sustain operations.
The cooperative's financial strain worsened due to delayed payments to collaborating producers, prompting many to seek feasible alternatives elsewhere.
In April 2024, a similar scenario unfolded when another plant in Carmelo ceased operations. Out of 54 facilities that supplied milk to Calcar, nearly 10 have had to shut down, underscoring the gravity of the crisis.
The National Institute of Milk (Inale) is evaluating potential solutions, including alternative milk collection tactics to ensure operations continue. De Izaguirre expressed the emotional toll of this cooperative's closure, emphasizing the importance of maintaining its commitments, although the financial difficulties eventually became unmanageable.
The lack of milk volume rather than industrial processes poses the main hurdle for these companies. In Uruguay, 75% of the milk directed to industrial plants is processed cooperatively. However, the significant drop in milk has resulted in devastating consequences for the sector. Horacio Rodríguez highlighted the precarious situation within the milk industry, where closures like Calcar signal an ongoing trend. He articulated concerns over a shift toward larger, more secure companies, revealing the financial uncertainty small producers face.
Despite the decreasing output, dairy operations continue to be profitable compared to agriculture or cattle farming. Nevertheless, the opportunity to attract new investors remains slim. As the domestic dairy market faces stiff competition due to stagnant population growth, international prospects offer a glimmer of hope for producers striving to sustain operations.
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