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Milk Production Forecast to Slow

16 January 2013

URUGUAY – The growth of milk production is predicted to slow to three per cent for 2013 and potentially stagnate, according to government forecasts by the Office of the Agricultural Policy Programme (OPYPA).

After growth of seven per cent in 2012 and almost 17 per cent in 2011 milk production is expected to slow in growth, reports El Observador.

The government has added that any adverse weather conditions could stop production growth entirely. This comes after a report published by Maria Elena Vidal in his OPYPA year book.

Also predicted by the OPYPA is an increase in farmgate milk price in the first half of the year. This is not expected to improve the margins of dairy farms however due to increases in feed costs and other key inputs.

The government have summarised milk production for 2012 stating that 93 per cent of milk produced (1,819 million litres) went into industrial processing plants, an increase of 6.3 per cent on the previous year.

The production increase for 2012 did not meet predictions made for the year, mostly due to heavy rains that impeded farmers.

TheCattleSite News Desk

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