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Cepea, March 4, 2024 – The price of the milk produced in January rose for the third month in a row, 4.5% compared to that paid to dairy farmers in the previous month, considering the net “Brazil Average” calculated by Cepea, averaging BRL 2.1347/liter. However, this price average is still 23.3% below that registered in January/23, in real terms (values were deflated by the IPCA from Jan/24).
The lower production explains the price rise to farmers, which has been increasing the competition between dairy companies and cooperatives for suppliers. The Cepea Milk Production Index (ICAP-L) moved down 1.85% between December and January. From November/23 to January/24, it dropped 4.1%.
The dry and warm weather has been affecting the production since September last year. Moreover, limited producers’ margins have led to a decrease of investments, reinforcing the scenario of limited supply at this moment.
Players surveyed by Cepea expect milk prices to continue to move up in the next months; however, two aspects may limit increases: consumption and imports. Agents say that the final consumption of dairy products continues vulnerable to price rises. Along with that, imports are high, pressing down quotations in the domestic market.
(Cepea-Brazil)
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Fonte: Cepea