The good milk

In Argentina it is discussing how to improve the marketing system of raw milk. Not that it is falling apart the world to pieces, but in a nutshell the milk you pay by the litre, not by its attributes intrinsic to vary a lot.

The factors of composition and quality of the milk are important in the generation of value, and deviations, with respect to a milk-optimal, contribute significantly to the loss of competitiveness of the Dairy Chain in argentina.

-The composition of the milk expressed in solid useful (%SU= % fat + % protein) directly affects the performance of most of the products produced.

-The somatic cell count (SCC) high alters the relationship casein: protein having a profound impact on the yields and the quality of the product especially when you gradually increase the period of ripening of the cheeses.

-The presence of bacteria (Colony Forming Units or CFU) with little impact on the yield, but it is a determining factor in the quality of the product getting worse the longer the time to maturity of each cheese. It also affects the sensory quality and shelf life of the product is fluid milk, cheese, or milk powder.

In the following infographic you can see the best attributes of the composition and quality hygienic-sanitary than a milk can have:

The processing industry has the dilemma of needing good quality milk for the issues manifested at the beginning of the note, and in turn achieve a volume of milk that allows you to maximize the performance of their installed capacity of development, investments made with these considerations obviously (including competence of Smes, the informality of the economy, argentina, etc.).

In the graph below, we see the price paid for raw milk with 2 different qualities (the grid is full and can get in the board of control published by the SIGLeA on a monthly basis). Typing (it varies month to month, compositional) A1 is the milk with a maximum level (>7,27% HIS) and optimum quality standard (less than 50 CFU and less than 200 RCS). Milk A4 is a milk between 6.92 and 6,74 %and a standard in UFC and RCS that the A1, while the milk D4 is milk solids (per cent) of the milk A4, but lower than standard quality (up to 100 CFU and between 400 and 600 RCS). Here we see how the milk inferior is price higher than the price per kg of solid useful (ITS) to be the best milk (A1). This is due to the manipulation of the bonuses commercial (which by agreement is suggested that a maximum of 20% on the final price of the milk, although there is much higher values so that it ends up watching an average of 20%). In addition to this, there is a milk called quality And that being out of standard quality marked by the Argentine Food Code (CAA) and involves a volume large enough to affect the general marketing.

The complexity of the painting of the national dairy can be a difficulty in improving the marketing system with which to move towards a scheme of payment by the composition and quality of hygienic and sanitary with lower expression of the bonuses commercial (some of us think at a level of 10%) would take a very long time.

One option would be that the exporting companies (about 30 in the country) offer a plus of +10-15% price for a higher milk. There is not much of that milk for them it would be easy to compensate for it. This trigger would the concept of paying for quality, and we would begin to have an increasing volume of high-quality milk, which would start paying the raw material for their attributes intrinsic.

On the other hand, to discriminate the freight of the milk in the settlement would represent a significant step in the reduction of bonuses commercial that conspire against a payment system transparent. For all of these proposals do not see how the informality, which crosses the argentine economy as a whole, to be able to play against. Of course there are some that move forward with the implementation of resolution 229 involving the entirety of the operators dairy sector.

Marcos Snyder

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