Brazil: Strong appreciation in the milk market and expectations
Brazil
Published Aug 10, 2022
Tridge summary
Scot Consultoria regularly monitors the milk market. In retail, the average price of UHT milk, considering the São Paulo average, rose 54.9% in 2022, whose average price is R$7.08/liter. Figure 1. Average retail price of UHT whole milk in São Paulo, in R$/L. Source: Scot Consultoria Does this increase in retail represent an improvement in producer remuneration? The price of milk paid to the producer also rose, see figure 2. Figure 2.
Original content
Scot Consultoria regularly monitors the milk market. In retail, the average price of UHT milk, considering the São Paulo average, rose 54.9% in 2022, whose average price is R$7.08/liter. Figure 1. Average retail price of UHT whole milk in São Paulo, in R$/L. Source: Scot Consulting Does this increase in retail represent an improvement in producer remuneration? The price of milk paid to the producer also rose, see figure 2. Figure 2. Price of milk paid to the producer, weighted national average, in R$/L. *I estimated. Source: Scot Consulting However, despite the better remuneration, the increase in producer prices was smaller than the increase in prices for the final consumer (figure 3). Figure 3. Behavior of the milk price paid to the producer, UHT milk at retail and Scot milk production cost index (high technology). Base 100 = January/20. Source: Scot Consulting The price increase was associated with strong increases in production costs and a flattening of margins. Follow, in ...
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