Price of milk continues to fall in RS

The price of milk has maintained a downward trajectory in Rio Grande do Sul in the month of September. According to data released at the meeting of the Conseleite, held on Tuesday (25), the reference value of the liter projected for the month is R $ 1.1480, 3.78% below the R $ 1.1931 consolidated in August . Despite the fall, the value of the UHT – head car of the dairy products mix – is above the parameters of previous years.

Valor de referência do leite para o mês de setembro deve recuar 3,78%

UPF professor Eduardo Finamore points out that after the peak of nominal value recorded in July in Rio Grande do Sul, milk had a two-month consecutive decrease due to the entry of the crop. “However, we have, in accumulated values ​​from January to September, the best nominal average price of recent times,” he says.

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The expert also points out that, in real terms (with accumulated values ​​from January to September adjusted by the IPCA), the value of milk in 2018 is at its peak with an annual cumulative average of R $ 1.1220. In addition, it recalls that in the field, producers receive above the reference value of standard milk on the basis of quality and quantity subsidies.

“What we are seeing is that, even if some producers are leaving the activity, production continues to grow. This shows that whoever is staying is producing more “, emphasizes UPF professor Marco Antônio Montoya.

“Production has already peaked and rainfall will help lift market pressure by ending the increase in capitation. This scenario demonstrates that there will be price stability in the consumer market, “says Sindilat President Alexandre Guerra. 

Sindilat’s executive secretary, Darlan Palharini, emphasizes the importance of balancing the production mix to stabilize the market, which is still highly concentrated in the UHT. “The production of milk powder and cheeses always helps regulate the market,” he notes. In addition, he stressed the importance of encouraging exports to ensure smaller oscillations in the domestic market.

This text was translated by machine from Brazilian Portuguese.