The specialized bank Rabobank presented its quarterly report stating that there will be a constant improvement in dairy prices.
He dairy sector It was not at its best but there are certain indications that it could improve during this year with the gradual increase in the prices of dairy Worldwide.
“It will probably not be a year of record prices by any measure, but producers around the world will welcome the return to profitability,” states the quarterly report of the bank specialized in commodities. Rabobank, which was published earlier this month.
According to the bank, the milk producers They will be able to have better profitability during this year and early next year, as well as a forecast of increased milk prices to the producer, lower input costs and increased prices of dairy products.
Meanwhile, milk supply from the world’s seven largest producers is also expected to turn positive in the second half of this year. Among them are the European Union, United States, China, Brazil, Argentina, New Zealand and Australia.
What is expected in the region?
Regarding the two largest producing countries in the region Brazil and Argentina, Different advances are expected. As to Argentina, It is established that producer milk prices are improving and that more favorable weather could help milk production recover starting in the middle of this year.
Brazil, For its part, it projects better margins as the year progresses, more favorable production costs with lower feed costs, as well as growing demand for dairy by consumers. Meanwhile, an increase of 0.5% is expected compared to last year’s levels.
Source: Ambito
