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Brazilian Dairy Prices See a Rebound in November After Six Months of Decline - CEPEA Report

Brazil 15.01.2024
Source: The DairyNews
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In a notable turnaround, the price of milk paid to Brazilian dairy farmers increased by 1.3% in November, marking the end of a six-month downward trend, as reported by CEPEA. Despite this positive shift, the overall trend for the year reflects a significant drop of 23.8%.
The preceding months witnessed a decline in prices attributed to surplus supply resulting from heightened domestic production and increased imports. However, the scenario shifted in November with a 1.3% increase in milk prices, breaking the consecutive months of decrease.

The Cepea Milk Production Index experienced a 0.7% decline from October to November, with Southern Brazil witnessing more substantial decreases. The reduced production is linked to unfavorable weather conditions, including warm and dry weather in the Southeast and Central-West, coupled with excess rainfall in the South. Additionally, dairy farmers faced challenges due to restricted margins.

This shift in pricing dynamics indicates a complex interplay of factors affecting the dairy industry in Brazil. As the country navigates through fluctuating conditions, the recent uptick in prices provides a glimpse of resilience in the face of challenges. (Note: BRL 1 = USD $0.20)
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