Offer decreases and rises once again

The restricted supply of milk in the country returned to the Brazilian producer prices rise in April, according to a survey from Scot consulting. The average amount paid to milk producers-delivered in March was 1.042 R$ per litre, recovery of 3.29 percent on the previous month, when it had climbed 2.66%, according to the survey.
Rafael Ribeiro, an analyst at Scot, States that the provision of milk at the beginning of the off season is falling due to the lack of rainfall in major growing regions, such as Central Brazil and Minas triangle, which affected the pastures that feed the dairy herd. To worsen the picture, the cost of grain used in feed supplementation of the flock are at an all-time high. This also impacts the production, says Ribeiro. According to the index of Scot milk in March fell 2.1% capture on February, on national average, and partial data show that there must have been other indentation 2% in April.
Before the retraction in the offer, the price to producers is not only increased because consumption is weak, reflecting the economic downturn in the country. "If the demand was normal, high would occur more expressive," says.
Although prices are high, producers on the banks of the ranchers are tight, because the costs have gone up even more. According to Scot, between April 2015 and April this year the costs of production increased by 26.2%. In the same comparison, producer prices had high (in nominal terms) of 14%, according to the consultancy.
Long-life milk prices also soared, but the appreciation is more expressive wholesale retail, according to the survey of the Scot. While wholesale paulista, the liter left R$ 2.38 in March to 2.44 R$ in April, retail, high was 0.06, R$ for R$ 3.05 per litre. "In retail, the high is lower because of the demand desaquecida".
Rafael Ribeiro, the trend is that the prices paid to producers follow steady in the coming months, but the entry of imported milk in the domestic market can limit the high.
He adds that the performance of milk production in the South of the country, where winter pastures are used in food, will also influence prices.
Scot research with about of 150 dairy shows that 73% expect high pay may producer and 27% believe in maintaining prices.