Rabobank estimates a drop in milk production in Brazil of 1% in the 1st quarter

Cow Milk

Dairy

Brazil

Sustainability & Environmental Impact

Market & Price Trends

Published Mar 7, 2024

Tridge summary

Rabobank predicts a 1% decrease in milk uptake in Brazil in Q1 2024 due to high temperatures and below-average rainfall. Despite this, spot milk prices have risen due to increased demand and lower availability. Milk imports are expected to remain competitive due to stable domestic milk prices and the real's stability against the dollar. However, a new decree favoring processors using only Brazilian powdered milk may limit imported milk. Lower corn prices and drops in soybean values are expected to keep production costs favorable, potentially improving farmer margins.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

According to a report released by the Dutch bank Rabobank on milk production in this first quarter of 2024, the projection is that in this period, there will be a 1% drop in the uptake of the product in Brazil compared to the same period last year. Analysts point out that high temperatures and below-average rainfall in the country's main dairy basins should continue to weigh on the production chain. In addition to damaging the vigor of pastures, there is also an impact on animal welfare, causing cows to produce less. “Spot milk prices have increased in the first quarter of 2024, reflecting greater demand and lower availability, with a decrease in production”, informs the report. According to Rabobank, with the unemployment rate in Brazil below 8% and an increase in wages, there was an increase in the purchase of dairy products at the consumer end. IMPORTS Still according to the Rabobank report, with the increase in milk prices on the domestic market and the real relatively stable ...

Source: NoticiasAgricolas