According to current minister of Productive Development and Plural Economy, Teresa Morales, reported to Los Tiempos that milk in Bolivia is produced at 60% of their existing capacity. Because of that the government will reduce the export of milk in order to improve internal consumption and will reduce its market price and will increase the tax on beer which will help create a fund to help the companies and small milk producers.
Morales believes those measures aim at improving the supply of the product, controlled by private companies, as part of a plan that will help increase the daily milk consumption. Morales believes that the 19 dairy companies are operating at half of their capacity and it is because Bolivians do not consume enough milk.
Under her program, she intends to tax 10 cents per beer liter sold in Bolivia; and to raise the tax on imported beverages from 40 cents to 1.30. She is confident that the small producer will receive an additional 40 cents per liter and that will help his business. Another chunk of those monies, under the created fund will go to advertise generic milk produce.
Morales presented data that records per capita yearly milk intake of 30 liters, while beer registers 38 liters per person (not counting other alcoholic beverages).
Interesting economics by this government, some broad assumptions that tries to make milk and beer as substitute products… I wish her luck in this endeavor.
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