News

Argentine powdered milk industries going to 35 pesos per liter with the rise in international prices

Cow Milk
Argentina
Published Mar 3, 2021

Tridge summary

After years of patient waiting, dairy farmers around the world were finally able to see prices for powdered milk above US $ 4,000 / ton. In the online auction held on Tuesday on the Global Dairy Trade platform - owned by the New Zealand company Fonterra - the whole powdered milk business with delivery in April was made at an average of 4,368 US $ / ton. And the operations for the rest of the months were also very firm.

Original content

The explanation behind the phenomenal rise registered by this commodity is - guess what - yes, indeed, China, which since the middle of last year has been importing unprecedented amounts of grains and food to (rebuild internal reserves?) (Prepare for a disaster global or war?) no one really knows for sure. In Argentina, exports of whole powdered milk –the main Argentine dairy export product– are punished by an export duty of 9.0% and a miniscule export refund of just 0.75%. However, despite these obstacles, the theoretical FAS of the milk of a “compact” industry, with a FOB of 4,300 u $ s / ton, is at 35 pesos per liter, according to the calculation made by the platform designed by the Observatory of the Argentine Milky Chain (Ocla). And without retentions, that capacity climbs to 39 pesos per liter of milk. What a nice little act. Last January, the weighted average price of milk paid to the Argentine dairy farmer nationwide was $ 22.7 / liter, according to the latest data ...
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