Thursday, August 18, 2016

Consumption of long life '' defies '' high prices

Despite the sharply higher prices in the domestic market, long-life milk consumption should grow this year at a rate of 2%, same level registered in 2015. According to estimate of the Brazilian Association of long life Milk (ABLV), sales must reach 6.86 billion liters this year. In 2015, were 6.73 billion liters.
According to Cesar Helou, President ABLV, the long-lived consumption in Brazil has been growing thanks to the advancement of the product on other categories, such as pasteurized milk and the informal. This has happened in 2015 and is occurring in this year. It considers, nevertheless, that the economic crisis in the country caused the consumer stopped taking milk. "There is a crisis, consumers not to drink milk. He flips to a cheaper brand, but continues to consume ".
While the long-life milk consumption should grow modestly, below the levels seen in previous years, the expectation is that the industry''s turnover in the country advance 15% expressive, after having achieved R$ 15.3 billion last year. "We were able to pass the inflation, and the tight supply of milk also contributed to the pass-through to prices," says Helou.
And the transfers of the raw material to the final product were indeed expressive. As the MilkPoint survey, consulting firm specializing in dairy products, between January and July this year long-life milk prices at retail in the city of Sao Paulo rose 57.9% in nominal terms. In deflated values, the high was 51.8%.
But already there are signs of some change in the milk market, both as regards the offer prices. According to the President of ABLV, long life sales have improved in the last 15 days, with promotions carried out of retail.
The offer also gives signs of improvement with the yield of milk from the South of the country-which, although not higher than that of 2015, "is good", according to Helou. Another indication that the availability of raw material begins to improve, says, is the falling prices on the spot market of milk (negotiations between companies).
In evaluating the President of ABLV, if milk producer prices remain steady, stimulating investment in cattle feed for ranchers, the production of the country will retire about of 3% this year. But if prices fall, the production may have 5% retraction. According to the IBGE survey, in the first quarter of the year the acquisition of milk in Brazil fell 4.5 percent, to 5.86 billion liters.
Despite the improvement in the supply of raw material for the dairy, Caesar Helou evaluates that imports of dairy products will continue. "The offer is now more balanced demand, but prices of imported milk encourages the acquisition abroad," says the Manager. While the Brazilian producer price exceeds $ 0.50 per litre, in Uruguay amounts to $ 0.26, notes.
The President of ABLV doesn''t quite celebrate the progress expected for sales of long life this year, but admits that "the moment the Brazil live, you can''t complain about 2% growth in consumption".
But the industry wants more than advance into other categories. "Brazil needs to increase consumption," says Helou. That''s why the entity which gathers 34 companies and 22 years, celebrates is launching today an initiative to highlight the benefits of milk. "There is a competition with the juice and other beverages industry. It''s not for liquor in the stomach of the consumer ".
The campaign, whose motto is "Milk your type", includes digital platform with content, milk briefs page on Facebook and social networks monitoring. "The goal is to end up with certain prejudices about milk," says Helou. The contents, based on information from institutions such as Embrapa and food technology Institute (Ital), aimed at clarifying myths about milk, according to ABLV. Address also questions about nutrition, health, and other recipes.
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