Leader warns that milk production is lower than last year.
Raul Cata, head of “Asociación de Productores de Leche” (APL) ensured that the «level of milk production is lower than last year» and it is about 11 billion liters a year.»There is a number that is not very clear, but it may be between 7% and 10% down due to unprofitable values for the activity,» he said. He clarified that «the prices suggested by “Mesa Nacional de Lechería” (National Dairy Board) meant an improvement, in terms of the Uruguayans, of about 3.60 pesos per liter”.
«Afterward the devaluation came, everything got complicated, then the government told the mills to pay around 3 pesos a liter, freezing the level to March, and since then we have that value, and a cartelization led by the government, “he said. The leader analyzed that «then, with costs closer to 4 pesos, and a price of 3 pesos, the situation is really critical, coupled with climatic and reservation problems,» he affirmed on “Siempre que llovió, paró“which is broadcast on Radio Colonia.
According to Cata, «the two key factors that today do not come into play in favour are: the climatic situation and international prices. Although the factors that make dairy really complicated are government measures that have been taken since 2005».
«The weather greatly affected stocks (pasture and soiling), and due to the faster consumption of which were generated in the summer, and a key point that is cow comfort, considering that the cow looks for a mild and dry climate. When there is humidity everything gets complicated, and the access to pastures and meadows, which make up half of the food consumed by cows, is very difficult, that is why stocks are consumed much faster, «he said.
When he was asked about the state of the roads in the dairy areas, he pointed out that «in general, they are in poor condition, so it is very difficult and complicated to bring balanced food to dairy farms. It’s the perfect storm, “he said.
With respect to the perspective of the dairy farms, he affirmed that “the closure of establishments is still happening. It is a trend that has been intensifying for 2 years, and which is very highly disturbing, although it is not reflected on the official figures. It is not known why SENASA do not shut down the corresponding dairy herds.
About the production he estimated that it is still at 11,000 million liters. This does not affect at all the internal market as Argentina still exports about 25% of production, even though the Government would be able to shut down exports, as industries were threatened before if they paid more than 3 pesos per liter, «he said.
Source: Lechería Latina