If we compare with the positive response during the previous crisis (2001/2003) the recovery of the price of milk is present in front of the relative prices determinants for the activity remains slow. This could explain the negative trend that presents the 2017 milk production at the national level, exacerbating the fall of -12,54% presented in 2016 with respect to 2015.
Analyzing data from the Observatory of the Dairy Chain in ArgentinaOCLApublished in in its latest report, it follows that the trend of production keeps declining during the 2017 and most likely the year will end with a volume lower than that of 2016.
The increase in development and the increase of sales in the domestic market (MY) would be explained in part by the fall in stocks and exported volume. In turn, the increase in sales to the domestic market is responding to increased domestic consumption, an issue that is getting better and traccionará the demand of raw materials.
Would be a great help to the transparency of the market lacteo local publication of evidence with the evolution of the production. We remind you that as of November, we'll have 12 months of data generated by the SIGLeA with the info 246-processing companies of the 85% of the national production.