The Dairy production grew by 4.3% year-on-year in the first 10 months, with 9,429.4 million liters produced, and would end 2021 with a growth of 3% compared to last year, when 11,113 million liters were generated. This was revealed by a report from the Dairy Economy consultant.
Meanwhile, the survey showed that sector exports grew 9.58% year-on-year between January and October inclusive, reaching 326,836 tons. East positive scenario was also reflected in the price paid to dairy farmers, which had an increase of 0.73% in October and 69.83% year-on-year.
Whereas, if inflation is taken into account, the third month of decline was recorded. “When analyzed in constant currency, compared to September, the price of milk fell 2.21% but remained in positive territory compared to October 2020 with an 8.46% increase,” it was specified.
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According to the study, this decline in October was something “to be expected”, since the adjustment benchmarks would be the official dollar price and the ability to pay for exports. Although they highlighted that “The price freeze also has a negative influence and this is what explains, at least in part, that after a year of increases versus the previous month, the price of milk in October was lower than in September ”.
Likewise, according to the report, the nominal increase in raw milk price continues to “slow down” due to the fact that it is at the levels “that allow the export of whole powdered milk to be paid in a context of devaluation below inflation.” On this, he said that “it results in the price in constant currency falling, while expressed in dollars remains relatively stable.”
Refering to corn-milk ratio, the work indicated that “Slightly improved” during the tenth month of 2021. This is due to the fall in the value of cereal. “The purchasing power of corn improved 2.94% in October compared to September, to 1.75 Kg / Lt, which represents an increase of 28.66% compared to the same month last year,” he said.
Meanwhile, “the soy purchasing power during October it fell 1.77% compared to September reaching 0.96 Kg / Lt, although it accumulates a 21.64% increase compared to October 2020 ″.
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“The increase compared to September is explained by a variation of 1.48% in the price of oilseed compared to 0.73% of milk, while the year-on-year is explained by a 39.62% rise in the price of soybeans versus 69.83% for milk, which, as it will be recalled, was particularly late in those months, “added the report.
Regarding the increase in production, it was detailed that “Nothing suggests in the short term that the trend will change beyond the logical seasonal decline that should begin this month.”
Among the factors that played in favor of the activity, the report highlighted the good condition of the herds and the climatic conditions with “little heat and humidity”. He also highlighted an improvement in the incorporation of technology that favored making production more efficient in handling animals. In this regard, although it has not yet been quantified, from the Dairy Economy they highlighted that there are more and more cows indoors.
In the international market, which continues with a sustained demand compared to a production of the main exporters that is not growing in line with expectations, Argentina commercialized 38,500 tons of dairy products.
The 38.2% of that total corresponded to whole milk powder. 125,134 tons were shipped abroad between January and October, with a rise 9.4% in that item. They followed whey and its derivatives, with about 55,744 tons, which they accounted for 17.1% of the volume.