August 19, 2022
Understand the reason for the increase in the past few weeks

Understand the reason for the increase in the past few weeks

The price of milk has become one of the most talked about topics on the Internet – and in supermarket aisles – in recent weeks. Although the value of the product naturally rises in the off-season, which occurs between April and June, there are other points that have affected the drink recently.

Santa Catarina is a Brazilian state Biggest monthly difference of the average net price. While the Brazilian average is 4.84%, the country scores an indicator of 8.89%.

According to the average raised by the Center for Advanced Studies in Applied Economics (Cepea), the price of milk collected increased by 4.4% in May 2022, compared to the previous month.

Compared to May last year, the increase is 11.8%. Since January, milk has accumulated in the field at a real rate of 14.5%. Cepea research also indicates that the increase in June is supposed to be 5%, so There is no expectation to stop the rise. In some Brazilian regions, the reports were between 7 and 10 Brazilian reals.

combined problems

Off-season milk is characterized by a dry climate, which impairs the availability and quality of pastures. Besides, the effects of La Niña and the increase in production costs were largely responsible for the sharp rise in prices.

The Center for Advanced Studies in Applied Economics (Cepea), which publishes the monthly Milk Bulletin, explained that the combination of these factors is what caused the prices that frighten consumers.

Cepea researcher Natália Grigol explains that since La Ninã is in its second year in a row, producers have not yet been able to recover from the drought of 2021. This phenomenon occurs when the waters of the Pacific Ocean have cooled.
“In addition, higher production costs combined with different inputs to the business have squeezed profit margins for ranchers since last year, complicating long-term investments – reducing the likelihood of a supply recovery.
Even in light of the high prices paid for the product”, emphasizes the researcher.

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