en.Wedoany.com Reported - Uruguay's executive branch is in intensive negotiations with the dairy industry association, planning to use the Dairy Guarantee Fund (Fogale) to provide financing for the National Dairy Institute (Inale). The final plan will be determined in the Account Report submitted to Parliament on June 30.

The government's proposal is to provide financing support for Inale through Fogale. Fogale's funding comes from a fixed deduction on priced milk sold to consumers, currently set at 2.45 pesos per liter. The fund collects approximately $3.5 million annually, resulting in a surplus. Inale decides how to use these funds to support various initiatives related to dairy development.

Currently, Inale's annual budget is around $1.4 million, with plans to increase it to approximately $2 million to achieve higher operational efficiency and play a more active role in the development of the dairy industry chain. Previously, ANPL proposed using Fogale's funds to establish a counter-cyclical fund, while SPLF and ATC hoped to use the funds to leverage irrigation investments.

Initially, the industry association insisted that Inale's funding should come from fees levied on dairy exports to support LATU. This proposal was made during last year's discussion of the five-year budget but was rejected due to opposition from Industry Minister Fernanda Cardona. The dairy sector pays 2.5 per thousand of export value to LATU, totaling approximately $2 million annually. This week, government authorities and the industry association are expected to hold new meetings to determine the final solution for Inale's financing.

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