January 17, 2021

Venezuelan ranchers turn to selling milk in US dollars due to economic woes

Venezuelan cattle ranchers based in one of the country's biggest agricultural regions of Barinas state have turned to selling milk in US dollars because of Venezuela's economic crisis, Reuters reported.

Regulations and expropriation of land has resulted in cattle ranchers switching from selling meat to dairy, reducing cattle breeding in the process.

Rising rearing costs have also reduced the country's total head of cattle from 2.5 million in 2018 to 1.7 million. The farmers said there is less cattle slaughtered due to high inflation that has affected beef demand.

Jose Labrador, president of the Barinas rural producers association, said selling milk for US dollars allows the ranchers "to have petty cash on the farm". He said one litre of milk sells for US$0.30 to US$0.60.

The national federation of ranchers in Venezuela said beef consumption has fallen from 26kg per person in the 1990s to only 8kg per person today.

The Venezuelan government is pushing for beef exports to Asia and the Middle East, with a number of ranchers able to sell beef overseas.

Producers estimate milk production in Barinas at about 2 million litres daily.

Labrador said ranchers are unable to invest in their farms as restrictions have been imposed on loans. Some farmers have abandoned their lands, while others have switched to farming corn, sheep, and swine alongside cattle.

Output is also affected by attacks from criminal gangs, who burn farms, kill livestock, and demolish equipment. The gangs seek to drive away farmers and sell their lands to third parties.

-      Reuters