Here we present 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 affects the protein source of the rodeo dairy and, in almost all cases, the payment of the rent of the land in production (for the chilean case we use Wheat in place of soy) 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 chart with the relative evolution of the producer prices by country. Finally a graph of input/output showing the pounds of corn that can be purchased with 1 lt of milk in each of the countries, as well as the current values of milk and corn to the producer.
We use the month of January 2022=1 as a starting point for the evolution of relative prices. Graphics importantly, the stability of costs of power for all but Argentina that with inflation and the “dollar Soy” desconfiguró the curve with a sharp increase in costs. It is remarkable the balance in uruguay. On the other hand, the price of milk to the producer shows a low in Brazil, although it remains at the highest price in the region, followed by Argentina and amesetandose in Chile and Uruguay. The argentine case is marred by a scenario of high inflation (94,8%), compared with Chile (12.8 per cent), Brazil (5,8%), and Uruguay (by 8.3%), which complicates the analysis.
In the following charts, we see a compilation of the data generating the Index of Costs and the Rate of milk Prices in dollars. In the first we can observe that the argentine producers are the ones who have suffered most by the increase of relative costs in the year 2022, markedly in the second half. It is followed by the chilean appeared to stabilize in January 2023, and the very back by the brazilian and the uruguayan economy of production more stable.
In terms of food costs, that became more expensive on all sides, the countries that presented the best value for purchase of corn per liter of milk (chart Kg Corn/lt Milk) are Brazil with 1,80 kg/lt, followed by Argentina with 1,49 kg/lt, Uruguay 1,40 kg/lt, and Chile with 1,11 kg of corn/lt of milk. The calculations correspond to the month of November 2022, month that we have all the prices of milk to the producer.
What makes the price of milk to the producer stands out Brazil, reached in July 2022 the 0,65 US$/litre coming in November on 0,48 US$/lt being the highest price in the region.
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