Milk/Cepea: After rising throughout 2024 in Brazil, producer prices are expected to end the year in decline

Published 2024년 12월 18일

Tridge summary

The article reports a decrease in milk prices in Brazil for October, but an increase when compared to October 2023, with a projected further decrease in November and December due to increased supply from the harvest. Research suggests a potential 5% drop in prices for milk in November and December. Dairy product prices, especially UHT milk, also fell in November due to increased raw milk supply and recovery of dairy stocks. While Brazilian dairy imports slightly increased, exports experienced a significant growth in November, leading to a small expansion in the trade deficit. Lastly, the costs of dairy farming in Brazil continue to rise, with a 0.68% increase in the Effective Operating Cost (COE) in November.

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

Original content

The price of milk collected in October closed at R$2.8065/liter (“Brazil Average”), a 2.6% drop compared to the previous month, but a 36.2% increase compared to October/23, in real terms (the values were deflated by the IPCA of October). And, with the progression of the harvest and the consequent seasonal increase in supply in the field, the outlook is that the year will end with the devaluation movement gaining strength. Research still in progress by Cepea indicates that the Brazil Average may fall by around 5% in November. For milk collected in December, the projection is a new decline, between 4% and 5%. Stocks recover, and prices of derivatives fall in November Research conducted by Cepea in partnership with OCB (Organization of Brazilian Cooperatives) indicates that the prices of dairy products fell in November. The biggest drop, 8.04%, was recorded for UHT milk, quoted at an average of R$4.36/liter in the São Paulo wholesale market. For mozzarella and powdered milk, the ...

Source: NoticiasAgricolas