Dairy regional: monitor of relative prices

Here we will present a monthly basis the evolution of the price of milk to the producer, and the main inputs that affect the dairy industry in Argentina, Brazil, Chile and Uruguay. In this monitor regional follow the evolution of the relative prices of key inputs that affect the activity of dairy production in the region as it is the Corn (the thermometer features food that takes more than 50% of the direct costs), the Diesel (impacts minimally on a 15% on cost of production), the Us dollar (more than 70% of the inputs of the activity listed in dollars), the Soy (the value of which is assessed, in almost all cases, the payment of the rent of the land in production) and the price of milk.

Then you will find a graphic with the Evolution of the Index of Costs compiled for ease of comparison, and also a comparison graph with the evolution of relative prices to the producer.

From the graphs it is noteworthy, in a first look, the displacement of the cost in food that affect negatively in all cases the activity, but more strongly in Argentina, Uruguay, then Brazil, and finally Chile. Economic stability (variation of the dollar) chilean generates curves with different trends to those observed in the rest of the countries.

Finally, and for the purposes of maintaining the general perspective goes a chart with values in local dollars for the milk and corn

Marcos Snyder

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