The dairy cooperative warned that “the impact that the value of the dollar is having today is very strong in the export sector.”
The exchange rate delay continues to worry among producers of Uruguay due to its direct impact on a lower competitiveness and lower performance, and the complaints now reached Conaprole, where they warned that “every peso that falls on dollar “It impacts $800,000 less income per month.”
The dairy exports They also suffer from the generalized weakness that the dollar in the local exchange market, which has had a downward trend for more than two years and 25 consecutive months of loss of competitiveness. In this sense, the director of Conaprole, Daniel Laborde, He noted that “the impact that the value of the dollar is having today is very strong on the export sector.”
In the particular case of the dairy cooperative, which exports between 70% and 75% of its production, “every peso that falls on dollar impacts on Conaprole in 800,000 dollars less income per month,” he said, in dialogue with Radio Rural.
The outlook for the remainder of the election year, meanwhile, does not seem to have major changes: “Whether we close a slightly positive or slightly negative year will depend on the price of the dollar and it will depend on how we sell the little that remains to be sold,” said Laborde, in this regard. “He milk price current situation for this exercise will be maintained, the unknown is for the future,” he added.
This, while a large part of the production until the end of the year has already been placed and that currently the market “is calm.”
Doubts about the future in the market
Likewise, Laborde said that there are difficulties in entering Brazil. “The trucks are stopped for 10, 12 days at the border,” he said, when the usual thing is a delay of three or four days. This, in a context of uncertainty regarding the authorization of dairy imports from the northern country in the face of the new restrictions requested from the government of Luiz Inácio Lula de Silva with the aim of protecting local producers.
“Brazil is undoubtedly very important for us because China still does not appear on the market,” considered the director of Conaprole. In this sense, China’s reactivation is essential for New Zealand can place a greater volume of production that is currently being redirected to other markets such as Algeria, at very depressed prices, he explained.
“The future presents itself with some dark clouds and with unknowns”, said. “We have great expectations of being able to sell at prices above GDT to be able to have a positive exercise and translate that into some improvement for the producer,” stressed the leader of the cooperative.
Source: Ambito
