The referral to Conaprole plummeted compared to a year ago. The dairy cooperative will maintain producer prices in April and May.
The delivery of milk to the National Cooperative of Milk Producers (Conaprole) It collapsed during February, with a drop between 11% and 12% compared to the same period in 2022, due to the effects of the extreme drought that affects Uruguay.
January had already shown a slight drop in the amount of milk produced in Uruguayan dairy farms that had reached Conaprole plants, but February was the “hinge month”, marking a hard time for the sector.
This is because it was the cow calving periodwhich resulted in few births because the producers could not sustain it due to the lack of water and, above all, food due to a forage strongly impacted by the water deficit.
However, and with production expected to be significantly lower for the first quarter of the year, recovery is estimated for April or May, while prolesa has food to cover the demand of 60 days from Argentina, and is evaluated to import also from Brazil to supply the market.
Producer prices will be maintained for April and May
Pending the arrival of the long-awaited recovery of the dairy sector, Conaprole announced that it will maintain the producer price during the second quarter of the year. This will allow the item to maintain certain stable income against the increase in costs, although the margin is not limited either.
Likewise, in a context in which dairy farms face high debt to cover production needs and, mainly, rations and bales for dairy cows; and where milk prices are generally falling — with very low demand from China-, Conaprole’s values are good news.
Source: Ambito
