Milk: High pace loses strength and prices rise only 1%

The price of milk lost strength in April, but even so, presented a high of 1% in relation to March, a value much below compared to the accumulated of the first three months of the year, which was almost 19%. According to the Center for Advanced Studies in Applied Economics (CEPEA), the low supply of the product is what is stimulating the price rise. Natalia Grigol, a market analyst at Cepea, explains that the fall in values is linked to the troubled scenario in the sector in the last year, and complements, "Unlimited production in the field, is an atypical issue, because in the first quarter the producer is at the time of greatest Milk production, but this year because of adverse climatic scenarios, of raining when needed and when it did not need, this caused a negative influence on production. In addition, the political institutional environment within the sector affected influenced the market. " "With the offer reduced in the first quarter, then the dairy companies ended up competing more for the product and the value was high, but despite the high of 19%, companies struggled to pass the raw material to consumers," Finalizes the analyst.