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Sky High Milk Prices Drop in New Year

19 March 2014

BRAZIL – Raw milk prices have fallen this year from their lofty 2013 levels, say industry analysts.

According to the Index for Milk Purchases, farmers received 0.41 per cent less for their milk in February.

The figure is a national average taking in farmgate prices of all major states and reflects high volumes of milk stocks within dairy cooperatives and retailers.

In February, farmers received 0.9910 reals per litre, a payment including freight and taxes.

The decline follows seven consecutive months of milk price increases last year and coincides with dry weather over much of central and southern Brazil.

Nevertheless, lower prices are being paid for smaller yields due to arid weather, reports the Centre for Advanced Studies on Applied Economics (CEPEA).

Processed goods reported gains and losses from January to February.

UHT milk lifted 2.4 per cent at the Sao Paulo city wholesalers after dropping since October.

Mozzarella slipped back 0.59 per cent over the same period.

Michael Priestley

Michael Priestley
News Team - Editor

Mainly production and market stories on ruminants sector. Works closely with sustainability consultants at FAI Farms


Top image via Shutterstock

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