Price per liter of milk paid in industries falls 22% in one year in MS – Rural Side

2023-08-26 15:45:00

Downward movement is atypical in the middle of the off-season; sector suffers competition from imports

Milk in MS suffers from increased imports and price drop in the off season. (Photo: Archive/CNA)

In the last 12 months (July 2022 to July 2023), the price of a liter of so-called spot milk – which is that raw product sold between industries – registered a negative variation of 22.09%, given that a year ago ago its liter had an average price of R$ 3.45 and in July of this year its value was R$ 2.69. This is in the middle of the off season.

The numbers are from the “Milk Index” report, an indicator for the MS dairy sector, calculated in partnership by Semadesc (Secretary of Environment, Development, Science, Technology and Innovation) and by Sefaz-MS (Secretary of Finance), referring to to the milk paid in August and captured in July.

In July of this year, spot milk presented a variation of -6.30%, a value higher than that verified for the previous month (Jun/2023), when a -8.02% variation was registered. When compared to the same period last year (Jul/2022), we had a movement in the opposite direction, since in Jul/2022 there was a variation in spot milk prices of +19.23%.

pasteurized milk

The liter of pasteurized milk presented a variation of -4.35% in July 2023, a lower value than that verified for the previous month (Jun/2023), when a +4.79% variation was registered. Compared to July last year, there is a movement in the opposite direction, since in that period there was a variation in prices per liter of pasteurized milk of +5.01%.

In the accumulated 12 months, in turn, the price of a liter of pasteurized milk recorded a variation of +10.44%, given that a year ago the liter had an average price of R$ 3.18 and, in July 2023 its value was R$ 3.51.

For the cattle breeder and veterinarian Aurora Real, from the MS Nucleus of Creators of Girolando, the high import of milk ended up aggravating the situation even more. “Normal in this off-season was an increase in prices to the producer, since the pasture is naturally scarce and the price of inputs increases,” she analyzes.

downward bias

According to Cepea (Center for Advanced Studies in Applied Economics), which calculates the Brazil Average for milk, contrary to the trend generally observed in this off-season for the product, prices of dairy derivatives continued to fall in July, pressured by weakened consumption and the entry of imported products into the Brazilian market. “It is important to point out that this bearish scenario for quotations has been observed for some months now”, says a report by the Centre.

Brazilian imports of dairy products fell in July, after two consecutive months of records. According to Secex data, 185.6 million liters of milk equivalent were purchased by Brazil in the month, down 12.5% ​​compared to June/23. When compared to July/22, the imported volume was 71.7% higher.