In the fifteenth
edition digital newsletter for the dairy sector, we can access the update in the month of JULY 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 21 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.
The analysis starts in November of 2016. Up to march 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 that are needed to cover the costs of production of the raw material (dotted line) and exceeded also the possible values of pay for the milk (red line for the Mega and Large-scale Industry and yellow to the Small and Medium-sized dairies). From April 2017 until September 2017, the system generated net positive. But as of January 2018 the costs of producing milk begin a climbing notorious sinking to the production in a drift not previously observed in the whole series, to rise up to the month of July.
All of this combine to that of 2018 to accumulate values retained negative of the whole chain, aggravated significantly in July:
The industrial sector from April to December 2017 retained net values positive, but during the 2018 showed negative values with great influence of Smes, accumulating an average of the industry segment for the 21 months of the reporting period, a loss of –437 million pesos. In the meantime, the sector of primary production accumulates in the same period a loss of almost 10-fold higher total –4.698 million pesos. The sector of primary production, with the absorption of 91% of the loss of the chain, load with the worst part.
The weakness of the purchasing power of the Smes cheesy, the price of raw material arrimándose to the payment capacity of the Great, and the strange absence of a bid by the milk for export keep you numb the demand for the raw material in Argentina.