Brazil: After five months on the rise, milk price should drop by 7% in November
Cow Milk
Brazil
Published Nov 19, 2020
Tridge summary
Slight increase in production and difficulty for the industry to pass on values to consumers put pressure on milk prices
Original content
After five months of high, the price of milk is expected to fall in November. According to the Center for Advanced Studies in Applied Economics (Cepea), the amount paid to the producer in November, referring to the capture of October, can be between 5% and 7% below that registered in the previous month. According to the entity, the values of milk in the field obey a seasonal trend, related to the availability of rainfall and pasture. "This means that, typically, it is expected that, at the end of the year, this trend reversal will occur", he says, in a bulletin. However, in 2020, the resumption of production has not occurred intensely, since the climatic conditions were less favorable. “Even so, in the first and second half of October, there was a greater supply of spot milk (negotiated between industries) in Minas Gerais, so that the monthly average fell 16.8% compared to September / 20, going to R $ 2 , 23 / liter ”, he informs. But, according to agents consulted by Cepea, the ...
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