Drop in the value of soybean meal benefits producers, who see an improvement in the milk x inputs exchange ratio
In Mato Grosso do Sul, the average price of milk collected in March increased by 1.22% compared to February and closed at R$ 2.2096 per liter paid to the producer. However, compared to March last year, the devaluation of the product reaches -3.30%. The numbers are from Detec (Technical Department) of the Famasul System (Federation of Agriculture and Livestock of Mato Grosso do Sul), released in April through the Casa Rural Bulletin – Dairy Cattle, Economy and Market.
Collection in the 1st quarter of 2024 totaled 50.82 million liters, it was the highest volume for the period since 2020, when 58.69 million liters were collected in the quarter. Information was collected from 1,259 producers served by ATeG in Dairy Cattle Farming in MS. Of these, 65% sold milk to industries and 35% produced dairy products.
Exchange ratio improved
The result for March/2024 compared to the previous month improved 25.2%. There was a significant drop in the value of soybean meal. In one year, the amount of milk needed to acquire the mixture (60 kg of corn and soybean meal) decreased by 14.47 liters.
Average Brazil
The average price of milk collected in March was R$ 2.3290/liter in the “Brazil Average” from Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, 4.1% higher than the previous month, but 20.3% below that seen in the same period last year, in real terms (the values were deflated by the March IPCA). With this result, the producer price accumulates a real increase of 12.9% in this first quarter. However, the average for the first three months of this year is 21.7% lower than the same range in 2023.
This is the fifth consecutive monthly increase in the price of milk paid to producers, and this movement is explained by the reduction in supply in the field. The limitation of production, in turn, occurs due to the adverse climate (drought and heat) and the reduction in livestock farmers’ margins in the last quarter of last year, which reduced investments within the farm.
Imports continue to be an important topic for market agents. Although external purchases of dairy products are falling, the volume internalized this year still exceeds last year’s. Data from Secex (Secretariat of Foreign Trade) indicate that, in March, imports fell 3.3% compared to February. However, this amount is still 14.4% higher than the same period last year. Considering the first quarter of the year, purchases totaled almost 577.5 million liters of milk equivalent, 10.4% above that recorded in the first three months of 2023.
In this context, the expectation of market agents is that the pace of appreciation of milk to producers will lose strength in April.
Tags: Milk producers remains valued March average liter Rural Side
