June 14, 2021

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Agriculture announces increase in the price of fresh milk

As of May 27, an increase in the price of fresh milk will take effect, announced today the secretary of the Agriculture department, Ramón González Beiró, and the administrator of the Office for the Regulation of the Dairy Industry (ORIL), Javier Lugo Rullán.

“According to the new scale, the minimum price of the fresh milk will be $ 1.64 and the maximum of $ 1.73 per pint. UHT milk will remain at the current price of $ 1.95, ”Lugo Rullán explained in written statements.

Fresh milk prices.
Fresh milk prices.

Said increase is the result of a rise in production costs that emerges from a recent economic study carried out by ORIL, the officials highlighted.

As Lugo Rullán explained, the results of the study were notified to the components of the dairy industry through a Audit Findings Report, which was announced on December 30, 2020, and the price hearing was held on February 5. At said hearing, various components of the industry sectors demanded an increase in price greater than the one that will be awarded.

“Since 2014, a study had not been carried out to evaluate the milk industry. Hurricanes, earthquakes and we continue to experience a pandemic, events that have stimulated inevitable changes in production in all parts of the world. It was hard to make way for an increase, however, it is necessary and fair for the producers, ”said González Beiró.

“We are attending to the request for an increase in the price of the fresh milk processing plants and their claims for the period of time without making a review, we decided to establish a mechanism provided in the law to prevent it from happening again. As long as they have a change in their production costs, they can be easily adjusted promoting efficiency and healthy competition for the benefit of the consumer ”, he added.

González Beiró explained that ORIL is a body created by law to regulate the dairy industry, and its responsibility is to evaluate the claims of the sectors and seek the general welfare of the industry to ensure the public interest.

According to Law 34 (Law to Regulate the Dairy Industry), every four years an exhaustive study must be carried out where costs, profit margins and all the components of the industry are reviewed.

“We are closely watching the trend in prices for livestock feed. For the moment, the farmers will continue to receive the same payment from the processing plants. However, we do not rule out that there will be a review process in August as established by law to address this matter, ”said González Beiró.

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