2024-07-01 16:56:33
Whereas consumption goes to finish three years in detrimental territory, stock ranges are rising and costs aren’t recovering. What are the measures to face this example?
HUILA DAILY, ECONOMY
The proper storm is brewing within the dairy sector. On the one hand, the consumption of milk and its derivatives has been in a deep decline for 2 years. In line with Asoleche, the consumption of milk merchandise has had contractions within the final two years: -9% in 2022 and -6% in 2023. And for this yr, though it has recovered very barely, the union estimates, preliminarily, which is able to register a drop of three%, nonetheless in detrimental territory.
Nonetheless, that is solely one of many points. Alternatively, milk producers, grouped in Analac, have denounced that from February to mid-June, firms similar to Alpina and Alquería have decreased the amount of milk bought by as much as 15%, whereas the worth paid to producers within the nation has fallen by not less than 12.2%.
He added that these actions, which in his opinion have an effect on the progress of the complete chain, decelerate productive growth and encourage informality within the sector. In his opinion, the coherent response in costs on the plant and on the client is prime for the meals and dietary safety of the nation and to strengthen the incipient restoration of consumption.
“The state of affairs of milk producers within the Colombian countryside is quickly worsening, as a result of willpower to scale back the receipt of milk on the farms by Alpina and Alquería, main processing industries within the nation. These determinations lead the producer to a essential state of affairs and enhance the uncertainty they’ve been experiencing for 14 months as a result of drop in costs paid on the farms,” Analac stated in an announcement.
And he added that the efforts of dairy farmers, who assumed extra prices to face the El Niño phenomenon, “aren’t coherently mirrored in costs on the processing plant or in client costs. This generates a severe threat for all producers, their household earnings, the roles that they generate with dedication within the Colombian countryside and is detrimental to dairy merchandise, that are important merchandise for the meals and diet of the Colombian inhabitants.”
For Ana María Gómez, president of Asoleche, the equation could be very easy: the extra rain there may be, the extra grass, the extra meals obtainable for the cows, and the milk manufacturing will increase. She warns that this occurs yearly, and describes them because the well-known slurries, by which the supply of uncooked milk will increase.
“What’s the drawback now we have this yr? That we’re already going to finish three years, by which the consumption of milk and derivatives is extraordinarily decelerated and impacts the business’s stock problem,” Gómez added.
The accounts had been contained in a letter that Asoleche despatched to the Minister of Agriculture, Jhenifer Mojica: “The inventories of milk powder within the formal business grew by 234% between April 2023 and April 2024. This can be a consequence, along with the marked slowdown in consumption, the dedication made by the business to proceed shopping for extra volumes from producers than it required, even though demand had been declining. This was performed with the target of not affecting the first hyperlink and in anticipation of an El Niño phenomenon that didn’t find yourself being as intense as projected and which, due to this fact, didn’t scale back the availability of uncooked milk within the nation as a lot,” he says. the missive
Within the letter, Asoleche defends herself towards Analac’s claims: “It isn’t true, as some teams of producers have lately said, that the formal business has made capricious selections to not purchase the entire present milk manufacturing. It’s merely that having these ranges of stock that can’t be cleared has a really important impression on the outcomes of the businesses. These volumes of product symbolize cash that has already been paid to the farmer and is caught within the firms’ stock accounts, producing storage prices and impacting money circulation,” defined Asoleche.
A number of months in the past, José Félix Lafaurie, president of Fedegán, warned of “structural dysfunctions” which have impacted this sector. On the one hand, excessive manufacturing, on common, 7.414 million liters; low formal assortment, represented in about 3.283 million liters, which is equal to 44% of the milk produced; on the opposite, few patrons, since in keeping with him, 40% of the formal assortment is concentrated in 5 firms; to that are added rising imports, since every year the capability to import from america and the European Union grows; dysfunctional distribution of consumption, the place the higher strata eat 190 liters per capita yearly, whereas the favored sectors solely 37 liters, “and the smallholding as a prevalent mode of manufacturing, that’s, small cattle ranchers and smallholder livestock with out animals with excessive productiveness, survival financial system,” he stated.
At the moment, Lafaurie additionally stated that with the greenback costly between 2021 and 2022, the business elevated assortment, “benefiting from the nice availability of milk available in the market; However with the progressive appreciation of the peso and the low extra-cup tariff negotiated within the FTA with america, of simply 4.4% by 2024, the import urge for food returned with the “traditional” argument of the necessity to enhance milk inventories. in powder to face the summer time with out producer costs skyrocketing.”
In line with Asoleche, the panorama just isn’t remoted: “Because the tempo of consumption of the ultimate product has slowed down, it has inevitably generated a backward chain impact for all hyperlinks. The detrimental penalties are impacting us all, however exactly for that reason we make a sort name to cease pointing accusing fingers at particular actors and tackle the disaster in a transversal and inter-institutional manner.
What all union representatives agree on is searching for options that can enable progress in consolidation, however most of the proposals haven’t been crystallized. In a latest column, Lafaurie factors out that it has been proposed that public purchases assist, that milk be necessary on the menus of army garrisons and, above all, on account of its significance for development, within the kids’s houses of the ICBF and the Program of Faculty Feeding, PAE, “which is stolen a lot,” he stated.
He additionally proposed an alliance between the State, farmers and the business, to provide milk for well-liked segments, with underconsumption that’s a part of the malnutrition issues, in addition to the creation of alliances to develop the spraying capability “and get even nearer to a situation of buy assure, just like the espresso growers have, in order that the small producer in our historical past doesn’t need to “cry over his spilled milk”, as a result of nobody buys it from him or should give it away informally at costs that don’t cowl the prices,” he says.
Nonetheless, he added that “for years now we have been placing proposals for options on the desk… and they’re nonetheless there. We are able to maintain extra seminars for an over-diagnosed drawback, however it’s pressing to maneuver on to options.”
Asoleche warns of the necessity to evaluation the necessities for participation in public buying applications, auctions and incentives for the export of Colombian dairy merchandise, in order that extra actors can entry them. “We rejoice the target of those mechanisms, however the issue is that the situations established for participation miss many industries, notably massive firms, which, if they may entry these mechanisms, may transfer important volumes with the ensuing revitalization of the market.”
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Additionally they suggest shock plans that enable the acquisition of surpluses at particular costs in order that the business can course of them, in order that the cattle farmer doesn’t lose these surplus volumes and in flip, the business has a aggressive product to export. “A further good thing about such a measure can be to formalize a phenomenon that’s already occurring: these surpluses that the business just isn’t in a position to purchase as we speak are being negotiated at decrease costs than the regulated ones and in an off-the-cuff method,” warns Asoleche.
For this group, the livestock sector additionally has at its disposal intervention measures on its dairy herds, to quickly make downward manufacturing changes, similar to growing the calf milk plan, early drying of cows or modifying the supplementation of concentrates, amongst different technical measures. And it warns of the necessity to materialize a marketing campaign to advertise dairy consumption in Colombia, with the contribution of sources and actions from the Nationwide Authorities and the manufacturing and industrial sector.
Analac known as for higher articulation of the chain to cease the nice detrimental impression for the sector “and particularly for the greater than 320,000 households that generate their earnings from milk manufacturing within the Colombian countryside,” he concluded.
Colombia’s dairy self-sufficiency
Numerous alternate options are underway within the nation to speed up the industrialization of the dairy sector and obtain self-sufficiency on this sector and increase its export potential.
The bulletins had been made by the Colombian Affiliation of Milk Processors (Asoleche) and the Ministry of Agriculture and Rural Improvement through the entity’s Productiveness Committee that was held in Cartagena.
They spotlight that the undertaking goals to convey the nation’s dairy manufacturing sector within the coming years to the degrees and requirements of enormous producers in Latin America, in an effort to provide the demand for native milk and make the nation a aggressive market to extend the speed. internet exporter, thus contributing to the financial development of the nationwide territory.
The undertaking is within the preliminary feasibility section; Minister Jhenifer Mojica Flórez indicated that they’re implementing the agro-industrialization dedication that was promised within the authorities plan and the Improvement Plan to make Colombia a world energy within the agro-food sector.
They point out that the undertaking has already efficiently superior in its first two pre-feasibility phases with preliminary research led by the Presidency of the Republic by the workplace of Professor César Ferrari, present superintendent and financial advisor, and ready by the Pontificia Universidad Javeriana.
It’s made up of a four-stage cycle that can enable the nation to make the initiative a actuality.
The following stage would be the feasibility section, which is able to happen between September and November, in order that, earlier than the top of 2023, Colombia can have a transparent roadmap for the actions and investments to be developed in an effort to obtain that within the coming years the dairy sector has elevated its manufacturing by practically 20%.
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