Cepea surveys show that the price for the milk produced in October and paid to farmers in November dropped by 6.2%, to BRL 2.1857/liter on the net “Brazil average” – compared to that in Nov/20, the average last month is 2.5% lower, in real terms (data were deflated by the IPCA from Oct/21). This is the second consecutive monthly decrease in the price paid to farmers. In this scenario, in 2021 (January to November), prices have faded by 5%, in real terms.
Cepea surveys also show that, from September to October, the Cepea Index for Milk Production (ICAP-L) decreased by 0.87% on the “Brazil average”. This result highlights that, despite the return of rains – which favor pastures – milk production has been constrained by higher production costs and the consequent lower investments in the activity this year.
The decrease in the price paid to dairy farmers also reflects the lower purchase power of consumers, which has been limiting sales of dairy products in Brazil since August. With weak demand and pressure from distributors, inventories increased, leading agents from dairy plants to reduce dairy prices in October.
Between September and October, Cepea surveys show decreases of 6.8%, 4.9% and 2% in the average prices for UHT milk, mozzarella cheese and powdered milk sold by dairy plants to wholesalers in São Paulo State.
