The dairy sector projected to grow 10% this year

The dairy sector projected to grow 10% this year

Juan Pablo Grijalva, Manager of the Association of farmers of the Sierra and the Amazon (AGSO), highlights that the dairy sector grew 6% both in production and sales in 2013, compared with the  5% of 2012. This year it estimates that the expansion of the sector will be 10%.

Grijalva, explains that during almost all of the past year, milk production faced a drought that raised costs between 15% and 20%, as for supplementing the pasture they used more balanced products to feed livestock.

However, he says two factors  will be crucial this year: to materialize the sale to Venezuela of 3,500 tons of milk powder per year and an increase of 10% of national consumption. According to the center of the dairy industry, the current average is 110 litres  per capita per year.

A preliminary overview of the center of the dairy industry (CIL) identifies factors that have contributed to shrinking the market and lower the profits like the growth of informal production of dairy products (cheese form Manabi, artisanal yoghurt and milk without registration), in addition to the rise of prices of the bearing capacity of the litre of milk from $0.39 to $0.42, value paid by the industrial producer.

However, executive director of CIL, Rafael Vizcarra, notes that sales of the sector are around $760 million, a 12% more compared to  2012.