The high value of animal nutrition inputs drives up operating costs and impacts chicken, pork and milk production in Santa Cruz, Beni and Cochabamba. 80% of production costs in the sector are feed. The imbalance in the supply of grains transcends in animal nutrition and impacts milk production, which, on average, fell from 7,000 to 5,000 litres in recent weeks.
Net International Reserves (NIR) continue a downward spiral; according to the Central Bank of Bolivia (BCB), between March 3 and 21, the stock of foreign currency reached $4.71 billion. It is the lowest level in 15 years; the last time reserve levels were below $5 billion was in 2006, when they reached $3.18 billion.
Cainco's affiliated companies in the dairy sector expressed their concern about the sustained reduction in dairy consumption in the country in recent years due to smuggling and low consumption in the domestic market. As of January of this year, there was a 20% year-on-year reduction in sales.
The pandemic caused a drop of 84.5% in profits of industrial companies last year, reducing 12.5% in revenues and reducing 70,000 jobs. An assessment by the National Chamber of Industries (CNI) informs it in its report "The impact of Covid-19 on companies in Bolivia".
Last year, sales of Empresa de Apoyo a la Producción de Alimentos (Emapa) fell by 53.3%; however, this year, the state-owned company is seeking to recover the dynamism of previous years.