August 11, 2020

 

Puerto Rico's dairy sector suffers US$300,000 losses

 

Tropical Storm Isaias has affected Puerto Rico's dairy sector, with financial losses of over US$300,000, The Weekly Journal reported.

 

Losses were estimated to be nearly 400,000 cuartillos (200,000 litres), given that abnormal weather conditions prevented milk collections.

 

"Nearly 400,000 cuartillos were lost due to flooding; there wasn't access to many dairy farms. Trees fell and some cows were lost; we are gathering the information. [Farmers] couldn't collect the milk and there damages to infrastructure and farms," said Jorge A. Campos, administrator of the Dairy Industry Regulatory Office (ORIL by its Spanish acronym).

 

After collecting the information related to the damages that the storm caused to the dairy industry, ORIL will proceed to evaluate aid alternatives in order to mitigate farmers' losses.

 

"We will see if the emergency fund can be activated to help the affected farmers and be able to give them a minimum payment for the milk they did not collect. Although it was not affected as much as the farinaceous sector, there was an impact, so we sought a compensation plan," Campos said.

 

Meanwhile, the president of the dairy sector of the Puerto Rico Farmers Association, Manuel Martínez, said that they will evaluate insurances to offset losses.

 

"The cow has its cycle and produces more between November and February. We are in the months where there is less production, between July and October, so school closures will not affect us. If the effect of the coronavirus extends to the months of December, January and February, it can change us. Now, we are managing what we have at the moment," clarified Martínez.

 

The closing of the school cafeterias has represented to the industry a decrease in sales of 479,000 cuartillos (239,500 litres).

 

ORIL is currently evaluating order 2020-022 that aims to avoid the monopolistic practice of the dairy industry in Puerto Rico, after the request for reconsideration of Suiza Dairy Corp.

 

"The order seeks that all dairy plants have a minimum surplus, so that no plant uses more than it needs and creates a balance between companies. We are reviewing the reconsideration sent by Suiza Dairy, to see if something should be reconsidered or if the order should be amended," Campos said without providing further details.

 

According to Suiza Dairy, a Puerto Rican company, the order alters the current regulations, as well as the Federal Ruling that states that Indulac is a balance plant that only receives milk after the demand of the fresh milk processing plants is satisfied.

 

"Indulac only receives raw milk that Suiza does not retain for its own use. However, the order requires Indulac to deliver milk that Suiza would otherwise retain," they argue.