Milk remission of Conaprole During June of this year it was 13.2% lower than in 2023, while the monthly differences continue to decline, as well as the half-yearly ones, the dairy sector is going through a complex moment amid the decrease in imports by Brazil.
In June, the total amount of shipments was 109.3 million litres, representing a decrease of 13.2%, while the last twelve rolling months also saw a decrease of 1.12%.
Meanwhile, regarding the first half of the year and the comparison with 2023, the director of the cooperative, Daniel Labordewarned that producers received between 15 and 18 million dollars less than last year.
Among the explanations, according to the director of Conaprole, There is a lower productivity per cow in the middle of an autumn season marked by excessive rainfall. Regarding the difficulties of the producers, the cooperative announced that they are evaluating possible financial solutions.
China and Brazil, a problem
The two main clients of Uruguayan milk are restricting their imports of the product. Regarding China, Laborde regretted that less and less is being exported. “We have exported very little to China, which used to be the second main market. Today it is not among the top 15,” he commented.
“As in China does not appear on the market is why there are these drops in the prices of whole milk powder, skimmed milk, cheeses, butter,” he added.
While Brazil, Import levels have remained stable in terms of volume, but there have been fewer gains, due to an unfavorable exchange rate. There are also logistical problems between the two countries, where there are long lines of 10 to 15 trucks. “Although we can enter, the logistical difficulties make it very difficult for powdered milk to reach the Brazilian market,” he lamented.
Low demand from the neighboring country
While Uruguay is experiencing a low milk supply, in Brazil There is an increasing perception of a decline in dairy product imports. A year-on-year decrease of 13% was recorded in June, although a monthly increase of 22% was recorded, with a total import of 177.9 million litres of milk.
The products that had the greatest increase were: milk powder whole and skimmed with increases of 31% and 56%, respectively. Meanwhile, the yogurts, Modified milks and other dairy groups suffered losses during the month of June, according to official data published by the Ministry of Foreign Trade (SECEX).
“It is important to highlight that Brazil “The Brazilian exporter still buys at prices higher than those charged in GDT for these imported products. Therefore, one strategy that our exporters can adopt is to consider price reduction as a measure to maintain competitiveness and continue supplying the Brazilian market,” says the analysis of Milkpoint based on SECEX data.
On the other hand, they commented on the situation of milk remission in Uruguay and Argentina, which implies a complication for Brazilian imports. “It is relevant to note that, despite the fall in milk production in Argentina and Uruguay In recent months, both countries are now entering their period of increased milk production, which implies a progressive increase in their respective sales,” the publication notes.
Source: Ambito
