Manufacturers assure that to get out of the crisis they have been facing for years, they need radical measures and less intervention in the market.
The dairy sector does not escape the problem of drought and adds to the crisis that has been going on for years.
Given this context, Economy Minister Sergio Massa announced the payment of the fifth installment within the Impulso Tambero program to mitigate the negative impact of the drought and the volumes of the soy dollar.
But dairy farmers assure they need radical measures and less intervention.
“It’s just a patch on a patch,” explained Marcelo Liziero, president of the Suipachá Rural Society.
Liziero said that there is a problem with the Tambos’ activity that everyone knows about and that cannot be fixed. “The farm gives milk for 30 days, and starts collecting, hopefully, ten days after the last delivery of the raw material. And maybe it will take you 30, 45 or 60 days to collect all the milk that was delivered. Will have to wait between days”, warned the villager.
So, at the time of getting paid, they have to support 8 to 10 per cent more inflation.
“The soy dollar also does its job, as the price of grain increases from one day to the next. Waiting to collect until the dairyman recalibrates the price of milk, which is 30 days later. will happen, and there are another 30 to 45 days, so everything costs late and nothing is good enough,” he explained.
According to Liziero, “nothing will be achieved until the economy is fixed and the underlying problem that is commanding the macroeconomy is not attacked.”
Liziero was the host of the new edition of Exposuipacha 2023, which took place last weekend, presenting 175 cheeses for the classic competition held at local rural facilities. The top prize was awarded to a petegas from the company Luz Azul.
For her part, Guillermina Mas, president of the Chamber of Milk Producers of the Western Basin of Buenos Aires (CAPROLECOBA), said that the advance payments of the Impulso Tambro program are “very limited”, adding that the benefits face difficulties. Dairy chain as a whole.
He commented, “We need milk production, even for the entire dairy chain, to have bottom-up interventions, as price controls hit the sector and consumer incomes are at a floor.”
Production
According to data from the Argentine Dairy Chain Observatory (OCLA), between January and March the amount of raw materials generated by dairy farms declined by 0.2% compared to the same period last year.
Meanwhile, globally, the indicator is rising with an increase of 0.8%, if the list of countries representing about 55% of global production is taken into account.
