Production Drop Means Higher Milk Prices For Brazilians08 May 2014
BRAZIL – Milk prices paid to Brazilian farmers in April leapt higher after a widespread fall in production, University of Sao Paulo data shows.
Compared to the previous month, milk cheques were over 6 per cent higher and 7.77 per cent higher than for March 2013, according to the Centre for Advanced Studies on Applied Economics (CEPEA).
Market research indicated contracting production was behind the price rise, which left processors competing for milk.
Analysts have blamed the drought for lower pasture productivity in central-west and south east regions. Southern Brazil has received rain but not enough to recover production.
This has come towards the end of many seasonal production cycles on farms, another factor, said CEPEA.
The Milk Purchase Index from February to March slipped 3.85 per cent. This has a positive impact on processor prices, pushing UHT milk and Mozzarella 3.3 and 1.97 per cent higher.
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