After several months of tense stillness, and with the price of milk recovering capacity of the purchase, the relative prices return to skyrocket increase the pressure on the production and demand...the chain as a whole.
On a day with international tension where fell the real, the mexican peso and the Turkish lira, for fear of an abrupt slowdown in the global economy, many investors sought refuge in assets dollarized impacting heavily in Argentina by the scarcity of local tickets. Meanwhile the chain all is hopeful for the arrival of dollars for agricultural exports and the contribution of the IMF that may mitigate this event.
The farm has about a 70 % of their costs dollarized, and the devaluation tap on the production of singular way to be concentrated in the main account to impact. The dollar came to $ 45 surpassing the $ 42 that had marked in September of 2018.
In the next chart, we look at the evolution of relative prices since January, 2014 (the year prior to the crisis). There we compare the evolution of the price of the milk against the of major inputs such as the balanced food (AB), the oil (GO), the dollar and the soy...all with a strong influence on the production of milk (whose evolution is recorded in the curve with the dotted line). To maintain the relationship between the milk and milk concentrates (AB), 2014, the price of the raw material should be placed in 12.8 in, and to be balanced against the dollar at 15.4 $/liter.
