Demand backs off, but the milk producer rises again

Although the final consumer demand continue to shy in the country, the price of milk to the Brazilian producer returned to rise in August. For the raw materials delivered in July to dairy products, the producers received an average of $ 0,978 per liter, up 1.3% on the previous payment, according to Scot Consultoria. Rafael Ribeiro, an analyst at Scot says that high reflects the off-season in the Southeast and the problems in the production of the southern region, which was affected by heavy rains in July and August. He notes, however, that the high recorded this year have been less significant than those seen in 2014. "The weak consumption scenario prevents a greater high," he says.
In comparison with August 2014, the shied milk 1.8% in nominal values. In real values, the fall was 8.6%, according to the Scot.
Long-life milk prices wholesale reflect the slowdown in demand. As the MilkPoint Market newsletter, the wholesale average prices fell from R $ paulista 2,03 per liter on average, in the third week of August to $ 1.99 in the fourth week. Consumption is pressed since the first half. Kantar WorldPanel: consumer data, cited in MilkPoint Market newsletter, indicate that the volume shrank by 4.6% between January and June this year compared with the same period in 2014.
To the nearest crop of milk in the Southeast and in Central Brazil, from September and October, the prospect is that the producer prices begin to lose strength.