Conaprole aims to keep milk prices stable through year-end
Gabriel Fernández, Conaprole’s president, said the cooperative expects to close the financial year running from August 2025 to July 2026 with a profit, though the final result has not yet been calculated. Unlike the previous year, when Conaprole made additional payments to producers after closing its accounts, the cooperative intends to retain the result to support the milk price in the coming months.
“We prefer to use what remains from the financial year to provide stability and avoid having to lower the price,” Fernández said. Conaprole does not plan to change the producer price in August or September. It hopes to maintain that position through the spring and, if commercial conditions permit, until the end of December. “Hopefully we can provide this stability until the end of the year. It is not impossible, but I cannot guarantee it,” Fernández said.
The decision comes as international dairy prices remain below the levels recorded for much of Conaprole’s previous financial year. Whole milk powder fell to about $3,500 a tonne before beginning to recover. Its current price is still $300–$400 a tonne below the average level at which Conaprole ended its financial year on July 31. Fernández said current sales prices would not by themselves allow the cooperative to preserve the amount currently paid to producers.
Supply is another factor in the cooperative’s planning. Conaprole is currently producing between 15,000 and 20,000 tonnes a month and has more stock than it did a year earlier. It has also begun arranging sales for milk production expected in September and October. “There is a lot of milk to place, and deals have to be closed no matter what,” Fernández said. He described the stabilisation of whole milk powder at around $3,500 a tonne as positive because it had stopped the previous decline.
The expected high-production spring will require the cooperative to keep its industrial and logistics systems operating at full capacity. Fernández also discussed labour measures at plant No. 8 connected with the operation of a piece of equipment. The matter is under negotiation, and Conaprole has begun arranging for senior personnel to operate the equipment because certain employees are unable to do so. “We will resolve this; there is no time. There is a lot of milk, and we cannot lose time,” he said. The company does not have a collective agreement containing a peace clause.
Port operations are an additional issue for Conaprole’s exports. Fernández said roughly 80% of the cooperative’s production destined for foreign markets leaves through the port, including part of its shipments to Brazil. Delays can create extra costs by requiring goods to be removed, lots to be changed or labels to be replaced. Disruptions may also delay the arrival of spare parts needed to keep industrial equipment running. “For us, the operation of the port is fundamental,” Fernández said.
