Milk paid to producers in Brazil remains valued in March

Published 2024년 4월 30일

Tridge summary

The average price of milk collected in March was R$ 2.3290/liter, marking a 4.1% increase from February and a 20.3% decrease from the same period last year. Despite five months of consecutive increases, the first-quarter price increase was 12.9%, but 21.7% lower than the same quarter in 2023. This is due to adverse weather conditions and reduced margins for livestock farmers. Despite the increase in milk price, this was not fully passed on to the price of dairy products, with UHT milk and mozzarella cheese prices rising by 3.9% and 0.3% respectively in March. Imported dairy products continue to play a significant role in the market, with a 14.4% increase compared to the same period last year. Market agents predict a slowdown in the pace of milk price appreciation for producers in April.

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

Original content

The average price of milk collected in March was R$ 2.3290/liter in the “Brazil Average” from Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, 4.1% higher than the previous month, but 20.3% below that seen in the same period last year, in real terms (the values were deflated by the March IPCA). With this result, the producer price accumulates a real increase of 12.9% in this first quarter. However, the average for the first three months of this year is 21.7% lower than the same range in 2023. This is the fifth consecutive monthly increase in the price of milk paid to producers, and this movement is explained by the reduction in supply in the field. The limitation of production, in turn, occurs due to the adverse climate (drought and heat) and the reduction in livestock farmers' margins in the last quarter of last year, which reduced investments within the farm. Cepea's Milk Capture Index (ICAP-L) continued to fall – the decline was 2.5% from February to ...

Source: Portal Do Agronegocio