In the eighth edition of the digital newsletter for the dairy sector, we can access the update in the month of DECEMBER 2017 the calculation of Reference values of the liter of raw milk developed under the convention INTA-IAPUCo, a work that constitutes a unique and enormous 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 14 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 new 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 see there 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 December 2017 continue to be positive margins for large-scale industry, while that of primary production continue to be negative, making the situation worse than it had restarted in September. Smes have lost competitiveness due to the fall in the price of the cheese, its main product.
This is reflected in the following graphic that describes the evolution of values retained for each link. The industrial sector, as of April 2017 he began to generate values retained positive accumulating in the 14 months of the study period +976 million pesos, while the sector of primary production accumulates in the same period a loss of -864 million pesos. After 8 months, the system dairy total returns to show retained value negative (-80 million):
At key times of the year, dairy farmers lose again competitiveness exacerbating a situation in a key moment of the year, which complicates the development of reserves forage crops and the sowing of pastures and verdeos.