Long-life milk sale grows less

Sales of long-life milk segment should grow 1.5 percent this year and reach 6.7 billion liters, the Brazilian Association of long life Milk (ABLV). The projection was made public yesterday by the entity, which notes that the "historic" pace of the industry is of the order of 3% to 4% per year and that "the fall to less than half is not comfortable in a thread that, by tradition, already lives with few banks".
In an interview with Value in April this year, the President of the entity, Cesar Helou, said the expectation of ABLV was a breakthrough in demand similar to that seen in 2014, when the long-life milk production amounted to 6.6 billion liters and grew 3.4% on 2013. On occasion, he assessed that, because it is a basic product and low value, consumption should be spared.
According to the projection of ABLV disclosed yesterday, the market should move $ 16 billion this year, $ 1 billion more than in 2014, whereas an average value of $ 2.40 per litre of milk to consumers.
In a statement yesterday, the entity asserts that "without shattering the mood of pessimism that reigns in the country, long-life milk industry live moments of apprehension Yes, but shows breath to adversity and expects sales growth of 1.5 percent for this year." According to Helou, the statement, "for being a product of high spin and low margins, this condition worsens in times of crisis, but I'm optimistic."
In the vision of ABLV, long-life milk segment is favored by the fact that "come from a period of major investments, by mid-2014, and by their constant gains in market share in the segment of fluid milk". In addition, says the entity, the consumption of milk is "fairly regular and the numbers show that the loss of the purchasing power of the population will not imply reduction of consumption because prices will adapt to the consumer's purchasing power".
The expectation of an increase of 1.5% in demand is sustained, according to the Association, by the growth of the population, by the continuing replacement of pasteurized milk and powdered milk long life and the decline of drinking milk.
According to ABLV, which conducts workshop today to celebrate its 21 years, the long-life milk is present in nearly 90 percent of Brazilian homes.