Brazil: Milk prices to producers remains high in September, according to Cepea

Published 2024년 10월 30일

Tridge summary

The article highlights the significant increase in the price of milk in Brazil for September, reaching R$2.8657 per liter, which is a 3.3% increase from August and a substantial 33.8% increase from the same month in 2023. This rise is attributed to increased competition among dairies and cooperatives, coupled with a limited supply due to dry weather in key regions and insufficient dairy stocks. Despite this, milk collection has risen, with Cepea's Milk Collection Index recording an 8.3% increase from August. However, prices may decrease in October due to higher collection levels and anticipated lower prices for dairy products and spot milk.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In line with the sector's expectations, the price of milk collected in September remained high. According to research by the Center for Advanced Studies in Applied Economics (Cepea), at Esalq/USP, the “Brazil Average” for milk closed the month at R$2.8657 per liter, registering an increase of 3.3% compared to August and 33.8% compared to the same month in 2023, in real terms, with values adjusted by the IPCA of September. Although the price of milk paid to producers has accumulated a real increase of 36.4% since the beginning of the year, the average from January to September 2024, of R$2.58/liter, is still 4.7% lower than that of the same period last year. The increase in price in September is due to greater competition between dairies and cooperatives in the purchase of raw materials, in a context of limited supply due to drier weather in the Southeast and Central-West regions and below-normal dairy stocks. Despite adverse weather conditions, milk collection continued to rise, ...

Source: Portal Do Agronegocio