Milk prices in Brazil expected to rise for producers due to lower-than-expected supply

The Brazilian milk market is signaling a possible increase in prices for producers, defying previous expectations that pointed to a drop. According to the September bulletin from Cepea (Center for Advanced Studies in Applied Economics), until the beginning of August, the expectation was for a reduction in prices, supported by the increase in producers' margins and a demand still favored by more affordable prices on the shelves. In addition, imports in high volumes exerted pressure on prices throughout the chain. However, reality proved different. In July, the price of milk collected fell by 1.5%, resulting in the so-called “Brazil Average” of R$2.7225 per liter. With the supply of milk not expanding as expected, Cepea projects a possible recovery in the amounts paid to producers. The survey conducted in partnership between Cepea and the Organization of Brazilian Cooperatives (OCB) indicated that, in August, the prices of some dairy products, such as UHT milk and 400g powdered ...