Brazil milk prices dropped 1.5% in July - Cepea
Prices are still 7.9% above those in July/23
10 September 2024
2 minute read
By: Interrupting the upward trend that had been observed since November/23, milk prices dropped 1.5% in July against June, and the monthly average closed at BRL 2.7225/litre on the “Brazil average", according to a recent market report from Cepea.
However, prices are still 7.9% above those in July/23, in real terms (the monthly averages were deflated by the IPCA from July/24). Although values have accumulated an increase of 30.1% since the beginning of 2024, the average from January to July this year (BRL 2.50/liter) is 11.5% smaller than in the same period of 2023.
Price drops are explained by the national supply increase. The Cepea Milk Production Index (ICAP-L) moved up 4.6% in July, boosted by increases in Minas Gerais (+8%), Rio Grande do Sul (+4.7%) and in Santa Catarina (+4.1%).
The milk production has been increasing due to investments in nutrition. Although costs increased 0.62% in July, producers’ profits remained high in the “Brazil average”. Profits rose 3.93% from June to July, according to calculations performed by Cepea in a partnership with the Brazilian Confederation of Agriculture and Livestock (CNA).
In addition to the increase in the local production, imports continue to boost the availability of dairy products in the domestic market. In June, imports upped 37.4%, totalling 251.1 million liters, according to data from Secex. This volume surpasses in 35.3% that observed in the same period last year.
