Brazil dairy prices finally rise in November - CEPEA
2023 prices dropped 23.8%
11 January 2024
1 minute read
By: After six months of decreases, the price of the milk paid to Brazilian dairy farmers rose 1.3% in November, closing at BRL 1.9981/liter, according to a recent market report from CEPEA. Over the year, however, prices dropped 23.8%.
Up to October, price drops had been linked to excess supply, due to increased domestic production and growing imports. However, milk production has declined since September, which explains the shift in prices in November.
The Index for Milk Production calculated by Cepea dropped 0.7% from October to November, influenced by more significant decreases in Southern Brazil. Limited production, in turn, is attributed to unfavourable weather conditions (warm and dry weather in the Southeast and Central-West, and excess rainfall in the South) and to restricted margins of dairy farmers.
(BRL 1 = USD $0.20)
