The dairy sector, which has the recent Organic Law to Promote Production, Marketing, Industrialization, Consumption and Pricing of Milk and its Derivatives, published in the Official Gazette last August, closes 2022 with orders, exhortations against possible conduct anticompetitive measures in the dairy market and balance sheets and clarifications from the authorities regarding controls.
On the one hand, the Superintendence for the Control of Market Power (SCPM) urged last Thursday, through a statement, economic operators and control entities of the dairy sector to abide by the provisions established in the Law, in particular, the chapters V and VI, in addition to the prohibitions outlined in chapter IX, so that the production, marketing, industrialization and pricing of milk and its derivatives, as well as its advertising, labeling and labeling, comply with the requirements that required by the current Ecuadorian legal system.
To date, per liter of milk on the farm, a minimum of 49.78 cents plus bonuses is paid. To apply the new law, it will be necessary to wait six months for its regulations
Chapter V, cited by the Superintendency, refers to the setting of the minimum price per liter of raw milk that is indexed at 52.4% to the retail price per liter (1,000 ml) of UHT milk in a sleeve, plus value-added bonuses.
It also refers to the proportionality of the commercial presentation. While the VI contains what refers to follow-ups, controls and sanctions as a consequence of the disrespect of the payment of the minimum support price and bonuses. Chapter IX explains the prohibitions, procedures, responsibilities, faults and administrative sanctions. The sanctions can go up to fines of ten basic salaries, confiscation or destruction of food with irregularities.
The Superintendency stressed that the Organic Law for the Regulation and Control of Market Power (LORCPM), in its article 27 numeral 2, prohibits economic operators from misleading consumers and users, including by omitting the characteristics, benefits, conditions, among others, of the products in the development of its commercial activity.
“The SCPM, to the extent that it identifies indications that economic operators have affected the competition regime or the generality of users and/or consumers, will initiate the corresponding administrative actions, in order to analyze the elements that configure or rule out the alleged commission of the conduct contemplated in articles 25, 26 and 27 of the LORCPM and, if applicable, will penalize eventual anti-competitive conduct to the extent that it distorts competition, affects the efficiency of the markets and/or the welfare of consumers or users”, warned the control entity.
This pronouncement coincides with the request made this week by the Chamber of Agriculture of Zone I, which demanded a more effective work on the part of the National Agency for Regulation, Control and Sanitary Surveillance (Arcsa) regarding the quality control of the milk.
The union leaders recognized that the work of the Phytosanitary and Zoosanitary Regulation and Control Agency (Agrocalidad) is good, however they pointed out that “it seems that there is a lack of teamwork between the two control entities.”
Likewise, they asked that the price of milk to the producer be respected by certain industries, based on the recently approved Law.
They also requested the Ministry of Education and the School Feeding Program (PAE) not to reduce milk rations for school breakfast and rather consider a better price for the benefit of milk producers.
This, by ensuring that four days of milk rations has been reduced to three days and it is intended to leave it in only two, replacing milk with other products. “One day represents 90,000 liters of milk that affect the producer,” they said.
Arcsa and Agrocalidad clarify their fields of action
In response to the producers’ claim, Arcsa and Agrocalidad issued a joint statement in which they explained the scope of their control actions in the dairy sector chain.
“Agrocalidad is in charge of milk controls on the farm, in the collection centers and raw milk transport chains and storage silos in the industry. For its part, Arcsa is in charge of controlling processed and industrialized products and by-products such as UHT milk for human consumption”.
In addition, Arcsa clarified that the statements attributed to it about the whey contaminating the raw product were taken out of context.
“Agrocalidad in the controls that it carries out from 2013 to 2022 in raw milk (raw material for the industry) has not detected adulteration with serum, Arcsa was referring to the comprehensive control that both agencies seek to establish over the entire production chain and dairy industrialization”, clarified the agencies.
Dairy industry regrets price fixing in the face of a reality of lower consumption and lack of nutritional education
Meanwhile, the Ministry of Agriculture and Livestock (MAG) reported that from January to December of this year, 742 operations have been carried out through Agrocalidad nationwide in order to verify the safety of raw milk and that it is ideal for production. manufacture of products for human consumption.
The controls were carried out in dairy farms, collection centers, means of transport and reception silos of dairy industries. 3,891 samples were taken, corresponding to the control of 7,949,147 liters of raw milk, which resulted in the seizure of 132,381 liters.
Bernardo Manzano, Minister of Agriculture and Livestock, said that the safety of raw milk is verified through rapid analysis tests in the field and tests in Agrocalidad laboratories.
“In addition, when an anomaly is detected, the product is immediately confiscated for non-compliance with current legal regulations,” he emphasized.
In addition, he emphasized that the MAG, in compliance with the cooperation agreements with Arcsa, supported 93 operations and controls of pasteurized, whole, and UHT milk with the taking of 379 samples by Agrocalidad technicians, who delivered the results to the Arcsa to take the pertinent actions within the framework of its powers, as it is a processed product. (YO)
Source: Eluniverso
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