Peru: Industrial collection of fresh milk has been discouraged in the last 10 years according to Agalep

Published Jun 2, 2021

Tridge summary

Peru's milk production saw a slight increase of 0.4% in 2020, reaching 2,140,000 tons, as compared to the previous year, according to the Association of Dairy Farmers of Peru (Agalep). The production growth rate has slowed down due to the elimination of tariffs and changes in the price band system, leading to a decrease in fresh milk production and an increase in imports of powdered inputs. The price of feed for cattle has also surged, causing significant economic damage to farmers. The president of Agalep highlighted the disparity between the low price paid to farmers by industrial companies and the high profit margins they enjoy, stating that the free market in the Peruvian dairy industry is not fair to farmers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(Agraria.pe) In 2020, the national milk production reached 2,140,000 tons, registering a slight increase of 0.4% compared to the 2,130,000 tons produced in 2019, indicated the president of the Association of Dairy Farmers of Peru ( Agalep), Clímaco Cárdenas. He explained that in 2009 the national milk production was 1,650,000 tons, which meant that the annual production increased by 2.4% each year between 2009 and 2020, when between 2002 and 2008 the national milk production increased by 6.9% annually, going from 1,050,000 tons to 1,570,000 tons. He highlighted that this slowdown in national milk production is due to several factors such as the elimination of tariffs in 2007 and 2008 (elimination of 20% tariffs and 5% surcharges), the modification of the price band system (the 15% cap and the methodology was modified by reducing the base), among others. “They delivered us to international markets that have subsidized prices, with more technology, more financing. That's where the ...

Source: Agraria