Long life milk shoots in the country in April, indicates Cepea

The combination of strong consumption and lower raw material supply dictated the prices of long life milk (UHT) in April, for the benefit of dairy products. Is pointing report released on Friday by the Center for advanced studies in applied economics (Cepea/Esalq). This month, the average price has climbed 5.4% UHT on the previous month and reached a national average of $ 2.07 per litre, higher value historical series Cepea, which began in March 2010.
Contrary to what occurred last year, when the dairy had difficulty in passing on high due to the high milk UHT stocks, the industry got long life prices adjustments above checked in the case of the milk paid to producers. In April, the price of milk paid to producers increased 4.01%, to an average $ 0,87 per litre, according to the Cepea.
The expectation, though, is that the industry has more difficulties to pass the new high of raw materials in the coming months. According to analysts consulted by the Cepea, the milk paid to producers should also rise in may due to the lower availability of typical milk in the off-season.
"There is no more room for large price increases [UHT], since it would limit consumer demand", the report summarizes the Cepea, based on information obtained from the dairy and wholesalers.