In the sixth edition of the digital newsletter for the dairy sector, we can access the update in the month of OCTOBER 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 argentina in the last 12 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 covering the 18 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. In October 2017 the positive margins continue to the industrial activity, while that of the production is turned again negative.
This is reflected in the following graphic that describes the evolution of values retained by link. The industrial sector, as of April 2017 he began to generate values held positive accumulating in all the analysed series +779 million pesos, while the production sector accumulates in the same period a loss of -636 million pesos.
Already passed the small wave of surplus seasonal and begins to fall traditional summer. Probably the big industry begins to adjust price given their greater purchasing power. By the side of the Smes the thing is not so simple because of their ability to purchase raw materials this depressed by the fall in the price of cheese -its main product - that so far this year (Oct/2017 on Oct/2016) has only grown +12,5%.