Thursday, September 17, 2015

Milk production drops in first half

The Brazilian Institute of geography and statistics (IBGE) announced on day 15 September Quarterly Survey data. In the second quarter of this year (April to June), the volume of milk purchased by dairy with local, State or federal inspection was 5.64 billion liters, 2.6 percent less than in the same period last year.
In the first half were picked up 11.74 billion liters of milk in the country, 1.8% less front of 11.98 billion liters in the same period in 2014.
The fall in the catchment is a reflection of market prices to pressed producer in 2015. With high production costs, investments were lower and production decreased.
Excess rains also have damaged the milk production, the capture and transport, in particular in the South of the country.
The expectation for 2015 is an adjustment in terms of supply and demand in the milk market. With milk prices, the expectation is for stability the slight fall in the share price to the producer in the short term.
The low movement must gain strength from October, with the harvest in Central and southeastern Brazil.
The producer price
In high six months ago, the milk price received by the producer has reached the highest level in August this year, according to the Center for advanced studies in applied economics (Cepea). Net price (without shipping and tax) amounted to r $ 0,9964 per litre on average Brazil ", which is weighted by the volume picked up in July in the States of MINAS GERAIS, Paraná, Rio Grande do Sul, SC, Brazil, GOIÁS and Bahia. In comparison with the previous month, there were 2.09% elevation. However, the current average is still 10% lower than in August last year.
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