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Stable Brazilian Milk Prices Tipped to Continue

05 September 2014

BRAZIL – Milk prices have been stable for three months and are expected to remain so in September, says the Centre for Advanced Studies on Applied Economics (CEPEA).

Brazilian farm prices contracted marginally in August, despite favourable production conditions and recent business investment leading to a production lift.

This would normally result in a greater price drop, but weak by-product demand and disrupted deliveries from southern dairies has reigned in supply, CEPEA explained.

Heavy rain has disrupted dairy logistics reaching consumers from southern dairy regions.

CEPEA revealed that more than half the industry expects level prices through September, with a quarter of stakeholders expecting lower prices.

Only 13 per cent expect prices to fall this month.

TheCattleSite News Desk

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