Producers Benefit February Farm Gate Price Rise25 March 2013
BRAZIL - Milk prices received by producers in February (January production) moved up 1.35 per cent comparing to the previous month, at 0.8219 real per liter (0.4163 dollar) – net price, according to data from Cepea.
This the weighted average of states researched by Cepea (Rio Grande do Sul, Santa Catarina, Paraná, São Paulo, Minas Gerais, Goiás and Bahia states). The gross price (freight and taxes included) increased to 0.8941 real (0.4529 dollar) per liter.
Smaller production pushed up prices in January. The Index for Milk Purchases (ICAP-L/Cepea) downed 2.67 per cent from December to January.
The smaller milk purchases, in turn, show difficulties that producers have to keep investments to the activity.
According to researchers from Cepea, important inputs, such as soybean meal, corn and fertilizers became slightly cheaper at the beginning of this year; however, as expected, production costs increased due to the increase of the minimum wage.
Besides higher production costs, high temperatures have reduced the productive performance of animals in almost all regions surveyed by Cepea. Players surveyed by Cepea also say that excessive rains in the Southeastern and in some regions in the South also affected milk transport.
In February, prices of byproducts remained stable. Prices of both UHT milk and mozzarella cheese in the wholesale market of Greater São Paulo remained almost at the same levels in January. (Cepea – Brazil)
TheCattleSite News Desk