Prices drop to the lowest level since April/16

Cepea, September 5, 2017 – The downward trend of the prices received by milk producers, which started earlier (in June) this year, intensified in August. According to Cepea data, on the “Brazil average” (MG, RS, SP, PR, GO, BA and SC), net prices (without freight and taxes) decreased 8 cents per liter (6.38%) compared to July, to 1.1555 BRL per liter. That was the lowest price level, in real terms, since April/16 (1.1516 per liter) – values deflated by the IPCA from July/17. Compared to August/16, prices have dropped 23.34%, in real terms as well.

 

Price drops in the field are linked to the low demand from consumers for dairy products, since the purchase power of Brazilian consumers has been weakened. According to Cepea surveys, retailers have been putting dairy products on sale aiming to keep the sales flow and avoid increasing inventories. Thus, prices of UHT milk and mozzarella cheese, the most consumed dairy products in Brazil, dropped 5.46% and 3.20%, respectively, from July to August (values deflated by the IPCA from July/17).

 

(Cepea-Brazil)

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