While the dairy producer local discusses how to address a market with weak demand for dairy (because of the contraction of the domestic market in an election year, and inflation worsened by the depressed external), one of the things that occur to her to think of it is as I will be going to the colleagues from other countries. Being the production of milk in the world a business cyclic, it is important that when there are favourable conditions, the primary sector of production receive enough price to cushion the period wrong. That is exactly what happens in competitor countries such as New Zealand (NZ) and united States (USA) where their dairy farmers participated in the gains offered by the market when the high international prices.
In the graph below, we see that NZ manifested the greatest sensitivity to the international price due to the higher proportion of export volume in relation to the produced (95%). The american producer takes longer to perceive the ups and downs of the market since the participation of the USA in the export is around 16% of the volume produced. The argentine producer should be placed in an intermediate place because the exported volume represents 25% of the produced, but it is amazing to see more well you can take it as the floor of the perceived values (in fact it is as indicated by the average of 37.2 hp/lt).
This is due to the lack of transparency in the sector in argentina compared with the NZ and USA? It shall be for our industry introduces some inefficiency important structural? or will be a result of the disorganization representative of the dairy farmers local in front of the well-oiled industrial?...able to that a little bit of everything...
Many of the questions that urge to respond...
Marcos Snyder