The evolution of the milk production in Brazil called attention, and even more so when the contrasts with that of Argentina in recent years (see graph milk Production in Brazil and Argentina). Many times you make this comparison as if it is from the primary production was decided to produce more milk, but there are background factors that explain this difference.
1.- Brazil produces less of what they consume and demand issued to be clear signals (that is, price) in an attempt to replace imports. Different is the case of Argentina that produces more than it consumes its domestic market and is a step above the not knowing whether to take the leap into the export or continue to extract surpluses thinking in the domestic market. It is noteworthy that of the total produced in Brazil only about 70% is industrialized (about 25,000 million litres), while in Argentina it is 93%.
2.- The dairy producer brazilian gets a price for milk is generally higher than their costs of production that are of 0.28 US$/lt. In the past 3 years, the tambero argentine claimed -22% less milk than what is charged on farms in brazil. An example of this is the evolution observed so far in 2020:
3.- The dairy producer in Brazil (around 900,000) access to credit to invest and grow with rates of 7% per annum in Real pay in 10 years and 2 or 3 years of grace.
With these differences, which are key, Brazil has been confining a large number of cows. In the last 5 years, more than 1,000,000 of cows came out of an estate of low production (18-20 lt per cow in the traditional system) and went to stables of 200 to 300 cows with compost to pass productions exceeding 30 litres. This is making a revolution in Brazil.
Dairy specialized dairy breeds versus dual purpose) is growing and currently is close to 35% of the volume of production. On the basis of a large proportion of Girolando is incorporating the cow Holstein highest potential dairy.
House of compost in Brazil (video courtesy of Marcelo Morae, GEA Brazil)
