Milk Price: High in Statistics, Low in Earnings for Ranchers

Published 2020년 7월 17일

Tridge summary

The article provides an overview of the dynamics of milk pricing in Colombia, highlighting both increases and decreases over the years, particularly in response to the COVID-19 pandemic and drought conditions. Despite rising nominal prices, which are the highest in recent years, farmers report that production costs have escalated more, leading to profit margins under pressure. The article also points out regional variations in milk prices, with some areas paying significantly higher prices. However, the Milk Trade Union Chamber of the Colombian Federation of Cattle Ranchers (Fedegán) has called attention to unfair practices in the industry, such as reduced payments and quotas leading to oversupply and profit margins being slashed for small producers. This situation is accompanied by concerns over the growing gap between producer prices and consumer prices, highlighting the challenges faced by Colombia's dairy sector.

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

Original content

In some departments, the price paid to the producer has registered increases according to the testimonies of the farmers such as the statistics. However, the Milk Trade Union Chamber has denounced reductions in payment and the setting of quotas in purchase volumes. Both values correspond to the national average and represent the maximums reached in recent years, with constant growth since December of last year. (Read: Milk collection and nominal price continued to rise in the first quarter of 2020) This record has been reporting a behavior similar to that of last year: while in 2019 it grew 7.6%, in the first five months of 2020, to Despite the conjuncture due to the new coronavirus pandemic, an increase of 7.2% was also registered. These percentages are higher compared to those registered in 2017 (2.9%) and 2018 (1.6%), but lower than 2016, when the nominal price of milk increased by 11.2%. (Read: Despite a better milk price in 2019, machines and supplies have risen much more) ...

Source: MXContexto