Uruguay's Dairy Sector Concerns Over Venezuela's $30 Million Debt

The leading dairy associations in Uruguay have expressed their concern over recent declarations made by Alfredo Fratti, the Minister of Livestock, Agriculture, and Fisheries. The statements pertained to a significant outstanding debt owed by Venezuela to Conaprole, Uruguay's largest dairy cooperative, which is estimated to be around $30 million.

This debt has been a point of contention, affecting the financial stability and operations of Conaprole. The Uruguayan dairy industry heavily relies on exports, and such outstanding payments pose challenges to its cash flow and future planning.

In response to the minister's comments, the dairy associations emphasized the urgency of addressing the debt issue to safeguard the interests of local dairy producers and maintain the sector's economic health. They have called for more decisive actions to ensure that Venezuela fulfills its obligations.

Conaprole, established as a cooperative, plays a pivotal role in the Uruguayan dairy market, processing a significant portion of the country's milk production. The unresolved debt with Venezuela highlights the vulnerabilities in international trade agreements and the importance of robust mechanisms to secure payments.

Uruguay's dairy industry has been navigating various challenges, including fluctuating global milk prices and market access issues. The situation with Venezuela adds a layer of complexity, prompting stakeholders to seek government intervention and explore diplomatic avenues to resolve the financial impasse.