The dairy cooperative had a decrease of 500,000 liters per day, although it expects a second semester with better prospects in shipment and prices.
Conaprole faces a significant drop in milk remission, with a result 13.5% lower than expected. However, the dairy cooperative Uruguay plans to close its annual exercise in July with balance, and that in the second semester improvements will be observed in the situation of the sector.
The dairy sector has been faltering since the drought history that the country suffered, and in recent months it was affected by the opposite phenomenon: the floods and excess water. This contributed to the milk shipment being reduced by 13.5%, according to the president of Conaprole, Gabriel Fernández, to Radio Carve. This meant, in turn, a daily decrease of 500,000 liters of milk.
“To give an idea, 500 thousand liters is almost like adding any of the second companies that may be in the Uruguay. And that also generates the problem that it is the strongest impact, since the industry is obviously affected, but in reality the most important thing is that the producer stops getting that money,” he explained.
A second semester with better expectations
Regarding the second half of the year, Fernández was more optimistic: the recent increases in the prices of Fonterraa key reference in the international market, They predict a possible more favorable second semester. The objective is to be able to transfer any improvement in milk price as soon as it is noticed in the markets.
The spring It could also come with good news. “Today what I can say is that we see a demanding market and that we are selling at interesting prices, which allows us to think that we are going to be able to transfer the producer a good price level,” said the president of Conaprole. Currently, the dairy cooperative pays about 40 cents per liter for milk, a historically high price.
Meanwhile, July will come with the closing of the company’s annual fiscal year, where there are also good expectations despite some challenges that have not yet been able to be overcome. “He exchange rate is going up, that for us is good news,” commented Fernández, although he admitted that there are still challenges, such as exports to Brazil detained at customs for administrative issues.
In that sense, he assured that the objective is to close the zero exercise, that is, without significant losses or gains. Despite this, he did not rule out the possibility of a negative result, although he stressed that it will not be as serious as the deficit from $14 million the previous year.
Source: Ambito
