At key times of the year, dairy farmers lose competitiveness again...

Tarro lechero buenisimoFollowing the evolution of the relative prices of some inputs outstanding affecting the activity of dairy production, as is the balanced food (the power supply is carried around 60% of the direct costs), the diesel (impacts by 15% over cost of production), the us dollar (the 60% of the inputs of the tambo is traded in dollars), the soy (the value of which affects the payment of rent, which averages 35 to 40% of the land in production) and the price of milk. We observe in this graph -which started in 2014 year prior to the crisis - an overview of trends, where after 2 years of displacement where the producer she worked at a loss, the price of milk had recovered with respect to almost all the indicators. In January of 2018, returns to unconfigure the equation productive marked by a price that does not grow while the key inputs to the business of producing milk are fired:

Evol precios relativos tambo

Para recover the competitiveness of the milk in front of the career of relative prices of the raw material delivered in January 2018 should assert 6,50 pesos/liter. The producer is in the midst of the campaign of silage, plans and planting pastures and verdeos, this is going to affect the production.

References: AB= balanced food shopping; GO= diesel

 

Marcos Snyder

 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top