Price of milk was discharged last month

The average price of milk producers in the country came back to rise significantly in August, but the indicators are falling from September. Scot Consultancy survey shows that the average price this month-considering prices in 17 States-producers had appreciation of 5.1% over July, reaching R$ 1.233 per litre.
Already the Cepea/Esalq in seven States shows that the average amount paid to the producer gross reached 1.6928 R$ per litre in August, new record in real terms. The price is 13% higher than July.
The price paid to the producer in August refers to the milk delivered to dairies in July, when the scene was still tighter supply of raw material in the country. But the environment comes changing gradually in recent months and other indicators (such as the spot, wholesale and retail) show that prices for milk delivered in August-and paid for September-should retreat.
"The August payment still reflects the drop in milk production in the first half. But since May the South production started up and in July also began to increase in regions of São Paulo, Minas Gerais and in the southeast of Goiás, "explains Rafael Ribeiro, an analyst at Scot. The registered growth, except for the southern region, due to a "relief corn prices" used in cattle feed, according to Ribeiro.
The Scot also detected a reduction in long-life milk prices of wholesale and retail in August reflecting a cooling of demand. According to the consultancy, the wholesale product paulista fell 0.79 R$ between July and August to R$ 2.64 per litre. In retail, the fall was less expressive, yet R$ 3.85 per liter in July, to 3.80 R$ in August.
For Ribeiro, high milk long life in the market was "so strong that reached a point at which the consumption started to degrade. This explains the wholesale and retail retreats in August. According to him, this pullback in demand dropped the price of long life, generating a low pressure on raw material.
On the increase in the supply of milk and formation of long-lived stocks, most dairy expects indentation in the amount paid this month for the milk delivered in August. Scot research with more than 140 dairy shows that 46% believe dropping the price, 19% to 35% in high and stability.