Why have Brazilian milk prices been rising for eight months? What’s behind this trend, and how are farmers gaining? Find out now.
Have you noticed the steady climb in Brazilian milk prices lately? You’re not alone. As dairy farmers, keeping an eye on these trends is crucial. So, what’s causing this persistent rise in milk prices? Let’s dive into the numbers to find out.
| Month | Net Price (BRL/liter) | Percentage Increase |
|---|---|---|
| January 2024 | 2.6120 | 2.1% |
| February 2024 | 2.6336 | 0.8% |
| March 2024 | 2.6711 | 1.4% |
| April 2024 | 2.7015 | 1.1% |
| May 2024 | 2.7178 | 0.6% |
| June 2024 | 2.7524 | 1.3% |
Milk prices in Brazil have risen for the ninth month in a row. In June, prices rose by 1.3% from May to an average of BRL 2.7524 per liter, a 3.25% rise over June last year. However, the average price in the first half of 2024 is BRL 2.46 per liter, 14.3% cheaper than in 2023.
So, what’s driving this price increase? Despite problems such as delayed harvests in the South and dry weather in the Southeast and Central West, milk output is increasing. Farmers have invested substantially in animal feed as revenues have increased recently. The Cepea Milk Output Index (ICAP-L) increased by 4.14% in June, indicating a considerable output surge.
But wait, there’s more. Dairy product imports increased by 22% from May to June, reaching 182 million liters. Although this figure is 14% lower than the same time last year, it is still 1.4% higher than the first half of this year.
Together, these factors have contributed to the constant rise in milk costs. However, the smaller gain in June might indicate that the market is stabilizing. Farmers should consider these changes and how they can impact their operations.
The present increase in milk prices is advantageous for Brazilian producers. However, maintaining abreast of market trends is critical. Production gains and growing imports are essential measures to monitor. Investing in animal nutrition and effective agricultural practices will be crucial to maintaining profitability.
Summary:
The rise in milk prices in Brazil offers promising prospects for producers, though the minor increase in June suggests potential market stabilization. Farmers must stay informed on market trends, production levels, and import activities. Strategic investments in animal nutrition and efficient farming practices could ensure sustained profitability.
Key Takeaways:
- June marks the eighth consecutive monthly rise in Brazilian milk prices, albeit at a slower rate.
- The average price of BRL 2.7524/liter in June represents a 1.3% increase from May and 3.25% higher than in June 2023.
- Despite the rise, the average price of BRL 2.46/liter for the first half of the year is 14.3% lower than last year.
- Increased milk production, driven by investments in animal nutrition, has contributed to this trend.
- The Cepea Milk Production Index (ICAP-L) rose by 4.14% in June.
- Dairy imports increased by 22% from May to June, totaling 182 million liters.
- First semester purchases of dairy products are 1.4% higher than last year, despite the June import total being 14% lower than last year.
Learn more:
- Brazilian Milk Prices Surge in April Despite Remaining Lower Than Last Year – A Cepea Report Analysis
- US Dairy Farmers’ Revenue and Expenditure rose slightly in March
- Why Milk Costs More but Dairy Farmers Earn Less: The Global Dairy Dilemma
