Money did not come in as desired in
2015 in the dairy sector, which got squeezed
as a result of soaring production costs. Prices
fetched by milk lagged behind the produc-
tion costs, generating losses to the pocket
and to the product. This is what was ascer-
tained by organs related to the segment,
strengthening even further the need to
broaden the administration system in con-
nection with business sustainability.
Average gross prices, from April 2015 to
March 2016, compared to the same period
the year before, went up 2.3%, but in real
terms – corrected to the General Price In-
dex-Market (IGP-M) – they went down 5.8%.
These figures are presented by Maria Hele-
na Fagundes, at the Milk Scenario of the Na-
tional Food Supply Agency (Conab). In the
meantime, she cites that the variable, opera-
tional and total costs soared 6.4%, 6.9% and
8.9% in the period and sequence.
Although prices outstrip the global indi-
cator International Farm Comparison Net-
work (IFCN), the losses endured by the Bra-
zilian dairy farmers over the recent years are
significant, says, in turn, Lorildo Stock, ana-
Net losses
Soaring production costs adversely affect the financial results of
the dairy sector and require more emphasis on business administration
lyst at Embrapa Dairy Cattle. Stock mentions
that from 2014 to 2015, in all major milk
producing states, farm gate prices dropped
4%, whilst production costs went up 9%,
in nominal terms. The nominal loss, equal-
ly taking into account the decrease of 5% in
animal sales, reached 12%.
In 2016, the Center for Applied Stud-
ies on Advanced Economics (Cepea), of the
Luiz de Queiroz College of Agriculture (Es-
alq), at the University of São Paulo (USP),
registers price recoveries in seven Brazilian
states, as a result of tighter supply. Howev-
er, “high production costs, frost conditions
in the South of the Country and the trend
of the dairy farmers to shift to beef cattle op-
erations continue discouraging the produc-
tion of milk”, according to an analysis by
the institute in May, when the dairy farmers
fetched 4.5%more than in April, and 15 per-
cent more than in May 2015, in real terms.
The relation remuneration/produc-
tion cost is generating mounting concern
about the administration of the activity.
Results achieved through technological ef-
ficiency, like higher productivity and short-
er post-partum intervals, will only be ef-
fective if they contribute towards higher
economic efficiency, recalled Christiano
Nascif, technical coordinator at Educam-
po, during the Regional Symposium of the
Production of Silage from Corn and Sor-
ghum, held by Embrapa in Coronel Pache-
co, Minas Gerais, in January 2016.
Besides the technological development
of the Brazilian dairy sector, according to
Nascif, it is necessary to make strides in farm
management. He commented that such ini-
tiatives involve routine data collections and
analyses, which allow for ascertaining the
production cost, whilst planning improve-
ment initiatives and managing results.
Milk production costs soared and
prices shrank throughout
2015
Sílvio Ávila
15
Fonte:
Embrapa Gado de Leite.
CHOQUEDEVALORES
Values in question
Evolução entre o que recebeu e gastou
o produtor de leite emMG e RS/2014 a 2015
Preço
- 4%
Custo
+ 9%
