Milk price rises more than 20% in the last 12 months, points out Cepea

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Milk producers have already increased the price of the product by 21.6% in the 12-month period, according to data from the Center for Advanced Studies in Applied Economics (Cepea). The value of the item, considered essential in the purchases of most Brazilians, has drawn the attention of consumers.

The average price charged by producers recorded in June this year is R$2.68 per liter. In January, the average value was R$ 2.10. And the consumer feels the rise in the markets. According to the latest National Food Basket Survey carried out by the Inter-union Department of Statistics and Socioeconomic Studies (Dieese), milk prices increased in 17 Brazilian capitals between April and May.

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On the shelves of the markets, the CNN raised that the liter of long-life milk varies from R$ 5 to R$ 9. In the preview of June’s inflation, the product accumulates a high of 3.45%, according to the Brazilian Institute of Geography and Statistics (IBGE).

The appreciation of milk is due to the lower supply, according to experts. The drop in production, in turn, is linked to the advance of the off-season, which occurs seasonally between autumn and winter – when the drier climate affects the availability and quality of pastures.

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“In the first quarter of 2021, there was a 10.3% drop in the volume of milk that was produced in Brazil. It was the biggest historical drop in the series, which began in 1997. So, I think it gives a dimension of how this offer has declined”, explains the researcher at Embrapa Gado de Leite Glauco Rodrigues.

In addition, according to the researcher, the cost of production has risen by more than 60% since 2020. Various inputs for the activity, such as fuel, medicines and mineral supplementation, have put pressure on ranchers’ margins.

“Milk production costs have gone up a lot. We started, in mid-2020, with a rise in the price of concentrate, feeding cows based on corn and soybeans. They are two very important inputs in a production cost structure. The feeding part is the one that weighs the most within a milk production system”, highlights Rodrigues.

Source: CNN Brasil

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