Price of milk in Brazil can affect growth of the sector

The President of the Brazilian Association of creators of Girolando cattle (Uberaba/MG), Jônadan Ma, warned about the commitment of the Brazilian sector growth because of the level of the current price of milk in Brazil. "Without a good price, we can''t get a solid base of the pyramid, which is the producer of milk. This class of milk producers is who makes and justifies the genetic work of us, creators. If the Brazilian producer is not protected, every investment made by the same in genetics, plant and capacity in the last 15 years will be lost, returning to the level of the years 90, "says Jônadan Ma.
The expectation is to increase sending milk for Brazil by up to 50% in 2016. As the market is being affected by the entry of milk under $ 10.00 per kilogram of milk powder, the Brazilian dairy may stop buying or having to pay less than $ 1 per litre of milk to the producer. Factor that increases the risk of breakage as much as producer of dairy.
Jônadan Ma also commented on the poor quality of the powdered milk, coming mainly from Uruguay. By be reenvasado in Brazil, the imported product may harm the market in the long term, especially the image of milk powder by the domestic consumer.
The President of the Girolando cattle presented some proposals to ensure fair market conditions for all the dairy sector. Among them, we highlight the need for import permits to prevent triangulation of milk by MERCOSUR and fulfillment of quotas; assimilation of sale for government procurement with public resources export: attestation requirement by the SIF provenance supplied milk, each batch; preliminary analysis of all consignments imported before the Customs release, in a laboratory certified by the Ministry-Lanagro, for quality assurance of the product, avoiding shoddy product in the Brazilian market; industry''s obligation to stamp the date of original manufacture split milk powder, and give as maximum validity the validity date of the overseas supplier, avoiding product sale won renamed; and the completion of the countervailing tariff on imports of dairy products from Argentina, you''re having allowance in order of 2.96 cents per litre. "The Government needs to meet the standards of tariff compensation when there is confirmation of these unfair foreign trade practices that affect the competitiveness of Brazilian producer," he said.