In Venezuela, they sell a liter of milk between 30 to 60 cents in dollars

Published 2022년 1월 20일

Tridge summary

Farmers in Venezuela's Barinas state are selling milk in dollars to compensate for the devaluation of the bolívar and are facing challenges due to a lack of financing during an economic crisis. They are now relying on milk production to support themselves, as they have reduced animal husbandry due to high costs and less demand for beef. The milk business allows them to have some cash flow to pay payroll and keep operational. Milk is sold between 30 and 60 cents per liter in dollars to compensate for the devaluation, making cattle smuggling less attractive. However, the devaluation of the Colombian peso has affected the livestock sector, and the value of milk in Colombia has fallen to 20 cents when measuring the value in dollars in the past 10 years.

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Original content

Farmers in the state of Barinas sell their milk in dollars to compensate for the devaluation of the bolívar, and get between 30 and 60 cents per liter, a little more than the average paid nationally in Colombia, which was 35 cents in 2021. According to Reuters, ranchers in Barinas, one of the main agricultural areas of the neighboring country, are struggling to make ends meet due to lack of financing under a persistent economic crisis, adding that: “The agricultural activity of the South American country has been affected by years of regulations and land expropriations, which has led ranchers, who depended largely on the sale of meat, to reduce animal husbandry and live more than the supply of milk. Cattle ranching in this state numbered 2.5 million head of cattle four years ago, but currently has 1.7 million, while breeding costs skyrocketed, according to producers. (Report: Milk Price: High Stats, Low Profits for Farmers) According to them, high inflation has affected the demand ...

Source: MXContexto