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Brazilian Milk Prices On the Up
SAO PAULO, BRAZIL - The milk market has been going up in the recent months. In São Paulo, the milk price paid to the producer is about 35% higher when compared to the same period of 2007.However, it is important to consider that in the same period, the cost of production also increased considerably.
Some of the major concentrated supplementations to dairy cows showed an average price increase of 50%, according to Scot Consultoria’s researches. Through that, the ranchers’ purchasing power has decreased. For example, the milk and corn exchange value has worsened 15.5% and the milk and citric pulp exchange value showed a decrease of 12.5%.
Therefore, we must break the paradigm that says: "high price is synonymous of profit." It’s really the opposite of that. Companies should work with good administration and efficient management, and then achieve good results. It’s more important knowing "how much money you spend”, than "how much money you earn". (CPT)
TheCattleSite News Desk
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