"We are becoming de-capitalized": Producers denounce a 55% drop in the price of milk
Dairy producers from Barinas and the Andean Axis of the country warn that, in recent weeks, receiving companies and the dairy industry have reduced the amount they pay per liter of milk at the farm gate by up to 55%, from 0.78 dollars to 0.35 dollars per liter. Banca y Negocios Representatives of these producers [...]
TL;DR
- Dairy producers in Barinas and the Andean Axis have seen a 55% reduction in the price paid for milk, from $0.78 to $0.35 per liter.
- This price drop was a unilateral decision by the industrial sector and did not affect consumer prices.
- Rising costs for inputs, veterinary medicines, and machinery maintenance are increasing due to inflation.
- The situation is leading to accelerated de-capitalization of production units, preventing necessary reinvestment.
- Producers are calling for dialogue between companies, authorities, and producers.