The dairy world is facing one of its typical cyclical crises generated by an oversupply of milk with respect to the global demand, reduced it substantially by the dramatic drop in chinese imports. All over the planet, dairy producers are receiving lower values for the milk delivered, the local problem lies in the lack of transparency and the producer ends up being the one that "is left without a chair when the music".
The dairy is a business cyclic in Argentina and also in the rest of the world. The countries most organized economically and institutionally have some mechanisms to mitigate the ups and downs of a market as volatile as the dairy (only sold internationally the 7% of the total production). Yet in the united States, for example, the producer price fell 20 hp dollar from September to date. What happens and is the most worrying thing is that for a cyclical activity like this, leave that spikes in price to the producer to make an average, and here in Argentina, the peaks did not exist. As we see in the graph, while we agree with the american producer in the lowest values, we were very far from the high values:
Now the question of the claim is exacerbated with the addition of ATILRA (Association of Workers in the Dairy Industry) to the discussion. From the CIL (Center of the Dairy Industry) wonder the reason of this unusual union in the claim, but in reality it was the Industry itself who involved by putting as an excuse for the inability to sustain the price of the raw material by the high inputs should be said guild (it's true because it agreed to pay 2,000 pesos/month/employee as "Supportive Contribution"). A group of producers from the area of Suardi is organized with the union leaders of ATILRA get all of this in a new entity (the 15°) of producers call (APLA Association of Milk Producers of Argentina) with the novelty of the alliance with ATILRA. Mixed into the many, and the Industry is faced with a dilemma that you never dreamed of.
This conflict ATILRA started blocking Saputo when it tried to move its staff to the guild of Food, it has been extended to the rest of the Industry.
Obviously there are very serious questions that must be answered and issues to internal local address, but the current crisis is already installed and there is not much to do...except lower production costs and unify the representativeness of the sector producer..!
Global Crisis ...local measures
