Brazil raw milk prices drop for fifth consecutive month - Cepea
From August to September, values moved down 9.08%
9 November 2023
1 minute read
By: The average price for the raw milk in Brazil dropped for the fifth consecutive month, according to a recent market report from Cepea.
From August to September, values moved down 9.08%, to BRL 2.0509/liter on the net “Brazil Average” calculated by Cepea. In one year (from September/22 to September/23), the decrease is 31.54%, in real terms (values were deflated by the IPCA from Sept/23).
The downward trend that has started in May is still related to the increase in the domestic availability of dairy products, because of higher production, high volumes imported and consumption too vulnerable to prices. Therefore, the pressure from distributors in trades with dairy companies has been keeping values down, trend that is transferred to producers.
In September, despite the 21.8% decrease of Brazilian imports, purchases in the international market were still high. From January to September/2023, imports totaled 1.6 billion liters, 90.4% more than the volume registered in the same period last year.
The Cepea Milk Production Index (ICAP-L) increased 0.36% from August to September – it is worth noting that this number represents a slowdown for production.
(BRL 1 = USD$ 0.20)
