ANNOUNCEMENT 31 Dec 2009

In December 2009, the government of Argentina announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 05 Mar 2009 | Removal date: 03 Dec 2009
Still in force

Production subsidy

On 5 March 2009, the Government of Argentina established, through Ministry of Production's Resolution 169/2009, a subsidies program benefiting small milk producers. The program was subsequently amended by several resolutions that expanded its eligibility criteria so as to include a larger number of producers, and that increased the amount of the benefit.
 
Currently, any dairy farmer that has produced up to 12,000 liters of unprocessed milk per day within the period June-September 2008 is eligible for the program. Eligible beneficiaries are granted by the Ministry of Agriculture non-refundable contributions, tied to actual output during the period June-September 2008. The benefit is capped at a maximum daily-benefit of AR$600 (circa US$ 160). According to Resolution 169/2009, the program will expire on December 31st, 2009.
 
The declared goals of the program are, inter alia: to foster sustainable growth in the sector; to increase the income of milk-producers; to secure the supply of milk in the domestic market; and to pave the way for the insertion of Argentine milk-industry in international markets.

AFFECTED SECTORS