Cheese production should grow 2.5 percent this year with increased consumption

The production of cheeses grew back after the setback caused by the crisis. According to the Brazilian Association of the industry of cheese (Abiq), the projected increase for this year should be 2.5%. The supply of milk, however, can be a challenge for manufacturers.
"We're not going to have a vigorous advance as vineyard going on before the crisis, when the sector was growing at 10% a year, but production should grow," says the marketing Advisor of Abiq, Olasunkanmi Figueiredo.
Last year, the production of cheeses topped 1 million metric tons, up 2% on 2016. According to the Chairman, both take resumed that in 2017 as the prospect of growth for 2018 are supported in increasing consumer purchasing power.
Silmara adds that this also causes the Brazilian food again outside the home, which increases the demand for the product on the part of restaurants, for example.
The sales and marketing manager of Scala dairy, Marco Antônio Barbosa, expect a top growth market for the company this year, from about 9% in volumes of production. "We had a good plucked from the first quarter," he says.
In addition to the heating economy perspective, albeit with less force than expected earlier this year, Barbosa designs that sales in atacarejos may have a significant role in business. "I believe this option is consolidated and will have a relevant weight in increased sales of cheese and dairy products in General," says.
Located in Sacramento, Minas Gerais, the dairy has three manufacturing units and ability to process more than 600,000 liters of milk per day in 2017, were processed approximately 180 million liters of milk and 25000 tons of marketed products.
Cheese consumption in Brazil is 5.5 kilos per inhabitant per year, yet little compared with Argentina, where the average is 11.5 kilos per inhabitant per year. According to Abiq, around 2000 dairy producing cheese in the country, with around 150 companies represent between 70% and 80% of sales.
The positive outlook of the industry is also related to the supply of milk. In the evaluation of the Abiq, the capture should grow at the same levels as last year, when the increase reached 4%, to 35 million liters, according to the Center for advanced studies in applied economics (Cepea).
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Throughout the crisis, companies have had a decline in profitability. In 2016, when the production of cheeses retreated 3%, the price of milk has increased due to the drought, which reduced the capture.
At the time, to avoid a fall in sales, many companies were not the increased costs fully. "This year, if there is an accommodation prices, should be small, since much of the production cost is the acquisition of milk and the offer must be balanced with the demand."
In the evaluation of Barbosa, if there is a skyrocketing milk prices, industries should have a second half positive in 2018. However, he acknowledges that the basin of the region in which the Scala operates is quite disputed and milk prices are high. The Executive informs him that the company has gone through two readjustments this year.
In the evaluation of researcher the Cepea, Natalia Grigol, can be a challenge for industries consider more consumption strengthened by more expensive raw material. Though I hope you gain growth between 2.5 percent and 3 percent this year, she warns the atypical scenario, with the production index of the milk building up 3.1% drop Cepea since December. "This is a result of decreased stimulation of the ranchers, that in 2017 produced in excess and saw prices fall below R $1 per liter," says Natalia.
The increase in corn prices because also extends the cost of production and can reduce the margins. The price of milk reached R $1.07 per liter on the average of the country in March, with high of 5.3% compared to February.