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The climate in milk production is uncertain. The price of milk, which has already fallen in recent weeks, is expected to drop further in May. Inventories in industries are high and there is no demand for points of sale. Even if social isolation ends next month, the situation will still recover.
Benedito Rosa, a commentator for Canal Rural, says that with the high volume of milk in large dairy products, farm production will be compromised. “The industries, medium and small, directed their production, which was cheese, to the stain. The big industries, apparently, had the breath to absorb this milk and make cheese and products. The month of April registered a situation of high inventories in the industries and if this is really happening, it may affect producers in May ”, he commented.
According to the commentator, Brazil needs to adopt more specific measures for the milk production chain during the covid-19 pandemic, as was done in the US government, for example. “In the United States, the government is paying R $ 16.5 billion producers to cover the negative profit margin. With that money, 36,700 dairy farms will receive direct financial compensation,” he says.
The commentator reinforces that this is not the time for the federal government to offer measures for normal crises. “It is a crisis of calamity, it is not the case that the producer sits down in front of the manager and sees if he lends. Now we need more urgent measures, because otherwise small and medium producers in some regions of the country, especially in the South, may abandon the activity and prices, even if they react in late May, do not arrive in time to help “, concluded.
