With Elton Weber and Evilson Luiz da Silva

 

Without dairy production, family farming will be seriously threatened

 

With only days to go to the IUF Global Dairy Conference, Sirel spoke with two members of the Brazilian delegation that will be attending the event in representation of that country's National Confederation of Agriculture Workers (CONTAG).

 

Elton Weber, president of the Federation of Rural Workers of Rio Grande do Sul.

 

-How much milk does Rio Grande do Sul produce?

-Our state produces close to 9 million liters per day. Oddly enough, Brazil both imports and exports milk. According to the Ministry of Agriculture, in 2009 Brazil exported 4 percent of its milk production, while at the same time in a single month it imported 40,000 tons of powdered milk. This reveals that the policy for stocking is not working correctly, if it exists at all.

 

-What is the situation of the sector in your region?

-In the last two years we've gone through very difficult periods, mainly with respect to the prices paid to producers, which in the winter months started to drop and only began to recover after the summer. In 2009, some areas suffered severe droughts as of February and March, and this meant a great loss of income for many producers, so much so that they had difficulties meeting obligations such as loans, etc.

 

-How much do producers get for a liter of milk?

-In Rio Grande do Sul small dairy farmers are paid 30 to 40 percent less for their milk than large producers.

 

For example, a producer with a daily volume of production of 1,500 liters receives 0.65 reais per liter (US$ 0.36), and one with a daily volume of 60 or 100 liters receives 0.45 reais (US$ 0.25). This policy penalizes small producers, and as the payment-for-quality system has not been implemented yet, many of these smaller producers, who lack modern equipment but produce better-quality milk, are paid less than others who produce the same quality milk.

 

Technical equipment is not the key to quality milk; the best quality milk is produced through good livestock care and management, which is something that family farmers are very good at, among other things because they know their animals, their peculiarities, and how to treat them in the day-to-day.

 

-Is dairy production unfeasible for family farmers then?

-First we need to bear in mind that 82 percent of the local milk in Rio Grande do Sul is produced by family farmers, and it's the only activity that generates a monthly cash flow for these producers.

 

Other activities such as corn, feijão (beans), fruits, or other crops, generally don't generate a monthly cash flow. So it's an issue with social implications, because dairy farming makes it possible for rural families to remain in the countryside.

 

-What are the main challenges for the future?

-There are some huge challenges, especially considering that Brazil is seeing an increasing concentration in the sector, as three or four companies are buying 80 percent of all the milk produced in the country. The same happens with consumption, as a few retailers cover the whole market.

 

-Are producers highly indebted?

-They are in some regions as a result of climate problems that altered production flows; and in other regions they are indebted because there's little competition between companies operating there, and so prices are usually lower.

 

We also have some positive experiences of small agroindustrial companies that set up to manufacture cheese and other dairy byproducts and are able to stay in business. These are mostly small- and medium-sized cooperatives that combine production with technical assistance provided to farmers.

 

-What are your expectations for the upcoming Conference?

-We hope to gain a lot in Buenos Aires from the exchange of information and experiences, learning about the situation of other producers from the region and the world, sharing our processes, learning and contributing solutions to face the challenges that await us.

 

Evilson Luiz da Silva, president of the Federation of Rural Workers of Minas Gerais

 

-What is the situation today in your state?

-Generally speaking it's pretty similar to what Elton Weber described for Rio Grande do Sul. We need a more defined policy for dairy production, because there too much price variation, and prices often drops below production costs.

 

Which is why we demand a fair price. A fair price is one that will allow producers to recover their investment and will give them a reasonable margin.

 

-How important is the state for national dairy production?

-With 320,000 establishments devoted to dairy production, Minas Gerais represents 43 percent of all the milk produced in Brazil –that's 12 billions liters a year, as national production totals 28 billion liters a year.

 

This production is crucial for the economy of agricultural families. Every farmer has at least some cows for milk production.

 

We also need the government to support us with the implementation of a genetic policy that will enable us to access selected and improved cattle, that is, more productive cattle. Today our farmers have incorporated appropriate cattle care and health and sanitation practices; we've invested in more modern and sophisticated cooling tanks to meet market standards; but we've done all of this on our own, as we haven't received any incentives from the government.

 

-What other difficulties do you face?

-Another problem are market operators, as it's generally the large cooperatives that buy the milk produced by small farmers. But due to legal reasons, the milk is formally attributed to another producer who is a member of the cooperative, so the result is that small producers are invisible.

 

-What are your expectations for the Buenos Aires Conference?

-This Conference is a much needed opportunity for debating and exchanging information about all these issues, because for us, dairy production is a social issue.

 

I've known all my life that milk is what saves rural families; it's the steady flow of hard cash they receive every month. Which is why the government needs to take better care of this sector and direct efforts towards defining a fair price that covers production costs.

 

-How does climate change affect you?

-It's a very serious problem for us. Right now, for example, in Minas Gerais we've been having unusually high temperatures for this time of year. For farmers whose cows graze in pastures, these high temperatures combined with scarce rainfall are a deadly combination.

 

The farmers who can afford it will supplement with animal feed, but that will later impact heavily on their production costs. Other farmers, however, won't be able to afford it and will just lose productivity. Climate change is one of the main challenges we will face in the future, and we're just not prepared for it.

 

-What are your expectations for the Buenos Aires Conference?

-I think it'll be an opportunity to discuss all these problems, because milk production is a social issue for us.

 

From the time I was born I've known that the milk produced in family plots is what guarantees the a family's daily livelihood; it assures rural families that they'll be able to cover their basic needs if no unexpected problems arise. Without dairy production, family farming in Brazil will be seriously threatened.