Price of milk collected in February rises for the fourth consecutive month, says Cepea

São Paulo, 1 – The price of milk collected in February rose 3.8%, to R$ 2.2347 per liter on the “Brazil average”, according to the Center for Advanced Studies in Applied Economics (Cepea), from Esalq/ USP. It was the fourth consecutive monthly increase. “Even with the increase, the average was still 21.6% below that recorded in February/23 in real terms (the values ​​were deflated by the IPCA of February/24)”, explains Cepea in a note. According to the analysis, the movement The increase is due to lower production in the field and the intensification of the dispute between dairy products and cooperatives for suppliers. Cepea’s Milk Capture Index (ICAP-L) fell 3.35% from January to February, accumulating a drop of 5.2% in the first two months of this year. Cepea says that the drop in supply is explained by the climate and, above all, by the squeezed margins of livestock farmers in recent months, which led to a reduction in investments within the gate. According to the study center, the expectation is that the prices of raw milk will continue to rise in the coming months, but the pace may be limited by consumption and imports. “Agents consulted by Cepea report that the consumption of derivatives at the end of the chain remained unstable in February, showing great sensitivity to rising prices. In this sense, dairy products have had difficulties in passing on the appreciation of the raw material in negotiations with the channels distribution. At the same time, dairy imports, even though they have fallen in the last two months, continue to add significant volumes, putting pressure on prices in the domestic market.”