Dairy industry representatives argue that national milk production is not sufficient to meet demand, which in the opinion of farmers is not necessary.
According to an article in Prensa.com, "recent approval was given for the entry of 3,000 tons of milk corresponding to a second regular quota negotiated with the World Trade Organization, so it does not make sense for industrialists to say they will run out of primary material", said Jose Pablo Solis, president of the National Cattlemen's Association, Chapter of Los Santos.
Meanwhile authorities at the Ministry of Agriculture have said that they will not approve any quota until an agreement has been reached between the parties involved.
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5,932 tons of finished products will be awarded as well as raw materials to supply to the domestic industry during the first six months of 2014.
The auction, organized by the National Commission of Commodity (Conabolpro), will be held on Friday November 29 at the Bolsa Nacional de Productos S.A. (Baisa). Those wishing to participate have until November 21 to register.
After being certified by Venezuelan authorities, the business Lacthosa will carry out their first shipment of some 334 tons of powdered milk.
The minister of the Office of the Secretary of Agriculture and Livestock (SAG), Héctor Hernández Amador, added according to LaPrensahn.com: "This is the´result of the negotiations that were conducted with businesspersons from that country last year, when 18 members of various countries that make up Petroalimentos, with various businesspersons who managed to complete rounds of negotiations because Honduras has the opportunity to export to Venezuela in various areas."
On October 1 an auction will be held for 118,000 metric tons of maize and 1,800 metric tons of milk powder which corresponds to the 2013 quota in the TPC between Panama and the United States.
The call was made by the National Commission on Commodities (Conabolpro) who will carry out the duty free auction on the National Stock Exchange (Baisa).
The only milk powder plant does not have a lot of processing power, and can not handle all of the supply during peak milk production.
"We believe it is important to try to establish a second processing plant for milk drying in potential areas, in order to process the country's surpluses especially in peak milk production moments," said Willmer Fernandez, president of the Central American Federation of the Dairy Sector (FECALAC).