Dairy industry expect price drop this month

The raw milk price paid to producers (includes shipping and tax) was discharged from 1.92 percent in May to $ 1,1046 per litre on average Brazil "(which ponders the volume picked up in the States of BAHIA, GOIÁS, Minas Gerais, Paraná, RIO GRANDE DO SUL, Santa Catarina and São Paulo), according to research from the Center for advanced studies in applied economics (Cepea). The may average 5.9% surpassed the same month from 2013, in reais (deflated IPCA values of April/14). The average net price (without shipping in taxes) amounted to r $ 1,0203 per litre in may, high of 2.08% compared to April/14. The increase in the national average price in May was influenced by the appreciation in the South of the country, mainly in the State of Paraná, and São Paulo.
This high in price, which is typical of the offseason, due to the lower production of milk, should not stand in the next few months, according to expectations of market agents queried by Cepea. According to industries and cooperatives, in many States, the demand for the raw material if desaqueceu, due to the high share of wholesale and retail derivatives. In fact, in may, the Cepea observed fall in prices of derivatives, which can narrow the margin of the industry, which has registered increase in raw material prices since March/14-in these last three months, the price of raw milk accumulates increase of 11.1%.
According to a survey of the Cepea, 49.6% of respondents (representing 50.8% of the sampled volume) believe in drop in share price in June. Other 31.2% (which account for 30.6% of the milk sampled) expect stability, while only 19.2% (representing 18.7% of milk) have high expectation for the next month.