After reaching its highest value in July last year, the price paid to producers per liter of milk in Mato Grosso continues to fall. The accumulated devaluation has already exceeded 26.4% and has been discouraging activity in the state.
In six months, according to a survey by the Mato Grosso Institute of Agricultural Economics (Imea), the price paid to producers per liter of milk fell from an average of R$3.06 to R$2.25.
According to the president of the Mato Grosso Milk Producers Association (Aproleite-MT), Dolor Vilela de Figueiredo Neto, two distinct factors are leading to the decline in the price paid to producers per liter.
One of them is the low consumption between the months of July and September. Meanwhile, between October and December, the rainy season begins, which improves pasture and, consequently, increases milk production.
In November alone, when the milk collection is paid to producers in December, there was a 20.7% increase in milk collection compared to October. This fact caused the price of a liter of milk paid to producers to fall by around 14.4%.
According to Aproleite-MT, the scenario seen in the activity should be repeated in January, when producers will receive the amount for the milk collected in December of last year. The reference price indicates a drop of another R$0.10 per liter of milk paid to producers, points out the Joint Council of Milk Producers and Industries in Mato Grosso (Conseleite-MT). Production costs follow the opposite direction
Contrary to the price per liter paid to the producer, the production cost increased between July and December 2022.
With corn alone, the producer, in the exchange ratio, needed just under 21 liters of milk in July to purchase a 60-kilo bag, while at the end of last year it closed at more than 28.7 liters needed to buy the same amount of cereal. An increase in cost of 37%.
In the case of soybean meal, to buy a ton, the producer needed around 790 liters of milk in July and more than a thousand liters were needed in December.
Lack of policies helps to discourage activity
According to Canal Rural commentator Miguel Daoud, Mato Grosso is a continental state and has a different characteristic from states with higher production and nearby dairies.
“With these fluctuations within our continent Brazil, you had to have policies that would ensure that prices were maintained during this perpetuity of production. It is clear that, until Brazil defines what it wants with agriculture, there is no food security strategy for agriculture. In Brazil, you plant, produce milk and the risk is yours.”
Source: Canal Rural