For Lactalis is closer to Nestlé in raising milk

The decline in milk production in the country last year, it generated strong periods for the raw material on the market did retreat raising milk from 15 companies of Brazil dairy in 2016. According to the ranking of Brazil-Milk producers association, the 15 biggest dairy companies captured together 9.667 billion liters of milk in 2016, a retraction of 1.9% on the previous year.
The first places in the ranking remained in 2016, but research has shown that the French for Lactalis got pretty closer Switzerland Nestle, the biggest fundraisers of milk in Brazil.
The survey also revealed a significant drop in the number of producers who delivered milk to these 15 companies last year – of 8.2%, to 56,452 suppliers, a reflection, in part, the small ranchers and activity of companies of concentrate purchases of larger and more productive.
In an environment of lower supply of raw material-according to the IBGE, the decline in milk production was 3.7%, the idleness of the dairy companies in the country increased by 2016. According to the ranking, whereas the estimate of total installed capacity of these companies, the idleness was in 40% in 2016-had been of 38% in the previous year.
Of the 15 companies in the ranking, 10 recorded drop in the uptake of milk while five extended the receipt of the product for processing. For Jorge Rubez, President of Brazil, the Milk purchase indent by the largest dairy products reflects both the raw material constraint as the demand for dairy products. According to him, it is estimated that the per capita consumption of dairy products in the country is around 170 litres under 180 liters of 2015. "Unemployment and lack of money affect the consumption capacity," laments Rubez.
First in the ranking, Nestlé has seen your capture fall 4.4 percent last year, to 1.690 billion liters. In a statement, the company says "this movement is explained by the more difficult economic scenario in 2016, together with the lower milk production in Brazil". On the reduction of the number of producers who have provided the company, States that "many producers are leaving the dairy activity in Brazil. On the other hand, there has been an increase in productivity of producers who remain in the industry ".
Well closer to Nestlé in 2016 that ranking in the previous survey, the French for Lactalis expanded the capture in almost 2%-to 1.622 billion liters, while the number of producers who deliver directly to the company has fallen. "We acquired as the need we had in function of market position," says William Paul, Director of institutional relations of the company in Brazil.
According to him, 2016 was a "good year" for the long-life milk. On the banks of the best product and to meet the demand, the company has expanded purchases of milk on the spot (business negotiation) of cooperatives in Rio Grande do Sul. Paul says that the approach of Nestle in the ranking reflects the goal of French company "be leader in Brazil, on the uptake of milk and dairy production.
The most significant changes in the rankings, two stood out. The Force, controlled by the J&F, fell from eighth to 11th position in the list to reduce the capture of 24.1% milk in 2016, to 311,300,000 liters. In a statement, the company claims "that your numbers are directly connected to the behavior of the market last year. Factors such as reduced exports, decreased domestic demand and less supply of raw milk in Brazil contributed to this scenario.
Already the dairy products rose in the rankings, Jussara exactly to eighth place before occupied by Force. The company, based in Patrocínio Paulista (SP), occupied the tenth position in the ranking of Brazil''s milk in the year 2015. The Jussara photographed 377,521,000 in 2016, up 2.8% on the previous year. The number of producers who provided directly to dairy also fell. "We make up for the fall buying milk at the spot getting producers," says Laërtius Barbosa, Director of Jussara.
In times of shortage of supply, spot prices are higher, but Barbosa notes that in 2016 the cost of milk intake grew up at a time when the long life was valued. This allowed favorable margins. "It was positive because we grew up in a year that sales [long life] were virtually stagnant," says.