MercoPress. South Atlantic News Agency

Uruguay to pick up the tab for Venezuela's unpaid milk bills?

“We are going to do our utmost to defend the interests of the State,” said Mattos.

Uruguayan dairy producer Conaprole has filed a lawsuit against the State for nearly US$ 62 million due to payments owed by Venezuela for the sale of products, Agriculture Minister Fernando Mattos announced.

Mattos added that the authorities had been informed of the lawsuit recently and were evaluating the dossiers.

Conaprole filed a legal claim against the Uruguayan State for US$ 61.8 million, linked to exports of dairy products to Venezuela that were not collected by the company.

“Supposedly there is a government guarantee that was granted at the time and we are verifying its veracity in order to be able to respond. We are going to do our utmost to defend the interests of the State,” said Mattos.

Conaprole is claiming US$ 31.8 million for exports to the Caribbean country from 2015, following the sale of 265 thousand tons of food that included powdered milk, rice, soybeans, chicken, and cheese.

The producers claim the Uruguayan government had participated in the transactions as a warrantor. In addition to the unpaid goods, Conaprole seeks US$ 30 million, for damages, it was reported.

Livestock Undersecretary Ignacio Buffa said Tuesday in a radio interview that “a legal situation is in progress regarding the business with Venezuela carried out by the previous administration” and that the ministry's legal department was reviewing the documents provided by Conaprole to prove that the Uruguayan government was the guarantor of the business.

Argentine dairy producer Sancor has also been involved in controversies with the Government of Venezuela for unpaid sales of products.