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Demand Drop Forces Farmer Milk Price Down

18 July 2014

BRAZIL – Farmers are receiving a lower average milk price due partly to low demand for milk by-products.

The Centre for Advanced Studies on Applied Economics (CEPEA) has reported a drop of 0.73 per cent, over 1.1 reals per litre.

A mix of smaller economic growth and a delay in cold temperatures are reasons given to lower consumption, along with high by-products prices earlier in the year.

Major losses to milk price of over 2 per cent and 3.5 per cent have been reported in Minas Gerais and Goias respectively. Price increases were registered for other districts.

CEPEA’s report said the Index for Milk Purchasing (ICAP) remained stable in May.

It added: “Due to the beginning of winter forage supply- for animals in the South, milk purchases in some regions lifted two to nearly four per cent. The exception was Paraná, where the decrease was 2.03 per cent.”

CEPEA analysts are forecasting a production increase in southern Brazil for the coming month as harvest replenishes stocks.

Drier regions in south eastern and central Brazil will produce less milk, continually suffering dry weather.

 

TheCattleSite News Desk



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