He dairy sector is going through a challenging context plagued by drops in milk shipments during the month of July, as well as in dairy farm prices and in exports that stopped having Brazil as one of the main purchasing countries.
According to the latest report of the National Milk Institute (Inale) The price of milk at the dairy farm fell both in pesos and in dollars. Thus, in a year-on-year comparison between July of this year and 2023, its decrease was 12 and 17%, respectively.
Meanwhile, the price per liter with re-liquidations was $15.32 and $0.38 last month. Meanwhile, the price per kilo of solids increased by 5% in July compared to the previous month, going from $190.5 to $199.5.
Bad news for milk remission
The discouraging data does not end there and the report establishes a decline in the remission milk. In this regard, industrial plants experienced a year-on-year drop of 9.2% from the 171.2 million liters shipped in July.
According to Inale, the frosts and the excess rain were the reasons that affected the development of pastures and the comfort of cows. This caused the month of July to become the fourth consecutive month, tying with the month of March, where 33 million liters were sent both this year and the previous one.
Regarding the remission So far this year, a loss of 5.2% is also estimated in the first seven months with 1,042 million liters of milk.
Brazil is increasingly restrictive with its imports
The South American giant reduced its sales by 8% year-on-year dairy imports in dollars between the months of January and July for a total of 639 million dollars.
Among the supplier countries, Argentina is in first position with 57% of imports followed by Uruguay with 28%, with some 179 million dollars in the first seven months of the year.
According to the figures of the Brazilian customs and analyzed by Inale, purchases of whole milk powder fell from 96,612 to 85,801 tons, which represented a drop of 11%. Argentina is also the main supplier of this product with 48%, followed by Uruguay with 45%, about 38,600 tons.
Dairy farmers’ call for help
In the midst of this scenario, the dairy unions They decided to request a meeting with the president of the Banco República (BROU), Salvador Ferrer, with the aim of advancing some type of financial assistance for the sector for those producers who send more than 3,000 liters of milk daily.
That is, those who were left out of the measure implemented in mid-May to assist small producers who send less than 3,000 liters per day.
It is necessary to remember that the unions met with the undersecretary of the Ministry of Livestock, Agriculture and Fisheries (MGAP) Juan Ignacio Buffa, with the aim of advancing in some kind of aid for those producers who were left in the middle. One of the objectives is to be able to advance in the extension of debt payment terms without applying a recategorization in the classification of debtors.
Source: Ambito
