In the TENTH edition of the digital newsletter for the dairy sector, we can access the update in the month of FEBRUARY 2018 the calculation of Reference values of the liter of raw milk developed under the convention INTA-IAPUCo, a work that constitutes a unique and outstanding contribution to build trust between the stakeholders of the Dairy Chain.
We present the graph that summarizes the dynamics of the supply and demand of the dairy market argentino in the past 16 months. Remember that this information should not be taken as a data point accurate given that it arises from more than 500 models evaluated, and presents a large scatter. It is rather a novel tool for actors in the sector to be ORIENTED to interpret what happens between the supply and demand of milk and observe the TREND that the market holds.
We observe an evolution that started in November 2016. As of February 2017 is a sample of the period lose-lose that covered the 19 months prior to the start of this convention where the price paid for the raw material (blue line) was not covered by the values necessary to cover costs of production of the raw material (dotted line) and exceeded also the possible values of pay for the milk (red and yellow lines). From April 2017 until September 2017, the system begins to generate net positive. For January 2018 remain positive margins for large-scale industry, although declining, while that of the primary production continue to be negative, making the situation worse than it had restarted in September. In February 2018 the cost of milk production, shoot, complicating the already weak position of the tambero. Smes have lost competitiveness due to the fall in the price of the cheese, its main product and continue with the trend. In the next chart, we look at the evolution year-on-year in the month of February in constant currency (updated for inflation to February 2018):
This is reflected in the following graphic that describes the evolution of net values retained for each link. The industrial sector, as of April 2017 he began to generate net values retained positive accumulating in the 16 months of the study period +912 million pesoswhile the sector of primary production accumulates in the same period a loss of –1.517 million pesos. Swept away by the crisis in the primary sector, the system dairy total returns to net values held negative with the aggravating circumstance that the industry also is accused, after 10 months of values retained positive, a loss of -71 million for February 2018 (Dec/17: -80, Jan/18: -173 million and Feb/18: -544):
