Another indicator shows the bad milk moment in Argentina: The cost of feeding is the most expensive in 12 years
Argentina
Published Jan 15, 2021
Tridge summary
The dairy farms have been in crisis for a long time and official policies do nothing more than generate uncertainty and send negative signals, such as intervention via export duties or maximum prices that subtract income from the entire chain and tend to fall on industries and producers. Milk paid to the producer thus rose 27% in 2020, below inflation. Those problems are in addition to cost hikes that impact dairy numbers squarely.
Original content
Many of these costs, especially in food, are above dollarized, as is the case with grains. This impacts the margins of the productive links. According to what the Observatory of the Milky Chain (OCLA) publishes, the drop is worrying. The price of milk charged by dairy farmers in December improved 5% and reached 21.4 pesos per liter, but the margin is still negative and this is reflected in the lower purchasing power with grain milk. That is, how many liters of milk are needed to acquire a kilo of alfalfa, soy or corn. After the December price increase, this indicator improved 2.9% in January and was positive for the first time in eight months. But according to what the OCLA said, it is still 35% lower than the same month last year. But in the historical series, the drop in the result of the first link in the dairy chain, on which all the other steps rest, is even greater. The OCLA compared the price of milk versus the food costs associated with a common food basket for all ...
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes.
To learn more about our cookies, please read our Privacy Policy.