Fresh milk production costs even double due to higher inputs in Peru

Peruvian dairy farmers on the coast are experiencing a significant increase in production costs due to a surge in the international prices of key inputs such as corn, soybeans, and wheat, essential for the diet of Holstein cows. These price hikes, attributed to global demand and drought in Brazil, have led to a dramatic rise in the cost of imported grains, with corn prices doubling within a year. Despite these increased costs, coastal dairy farmers have not been able to pass on the price increases to their sales, maintaining the same sales prices while operating at a loss. The situation has led to concerns about the financial sustainability of these farmers, with some facing the threat of closure as they struggle to cover their expenses. The Association of Dairy Farmers of Peru (Agalep) has called for a meeting with the Minister of Agriculture to address this crisis and has highlighted the challenges farmers face in negotiating milk prices with processing industries and in finding alternatives to sell their fresh milk. In response, Leche Gloria, a milk processing company, has implemented measures to support farmers, including offering an emergency bonus for each liter of milk purchased and providing subsidized food for livestock at half the increased cost of international prices.