Brazil milk prices rise 18.7% in April - Cepea
Unfavourable weather delated milk production
5 June 2024
2 minute read
By: The price of the milk produced in April in Brazil closed at BRL 2.4576/liter on the net “Brazil Average”, moving up 5.1% compared to that in the month before. It is the sixth consecutive rise, according to a recent market report from Cepea.
Therefore, in the partial of this year, milk values rose 18.7% in real terms (quotations were deflated by the IPCA from April/24).
Price rises continue linked to the production decrease. The Cepea Milk Production Index (ICAP-L) dropped 0.37% from March to April and 7.8% in the accumulated of 2024.
In addition to the low investment at the end of last year, the off-season period in the Southeast and in the Central-West and the delay of the season in the South, due to unfavourable weather conditions, have reduced the supply of raw milk. Thus, the competition among dairy companies and cooperatives for suppliers in order to assure the raw material remained significant, sustaining the upward trend. This scenario is likely to continue in May, reinforced by sharp increases of milk prices in the spot market and the speculation of players, given the impacts of floods in Rio Grande do Sul on the dairy activity in the state. However, the upward trend may lose strength from June on.
IMPORTS – Data from Secex indicate that imports totaled almost 774 million liters from January to April, 15% more than in the same period last year.
