Milk Production in the Semiarid: costs of the insumtakes producers from the activity

For Adriano Batista – Diretor Executivo Adel

The milk producers of the semi-arid live a dramatic situation to continue in the activity. This is the case of 270 producers of the Medium and Low Jaguaribe and Sertões de Sobral not Ceará, served by the Adel in partnership with the BNB. Os produtores enfrentam dificuldades para equilibrar o caixa financeiro da propriedade, because the low milk price and high costs of the insare making production unfeasible in times of pandemic and rainy block below average.

According to the data of the CEPEA, between March 2020 and March 2021 corn and soybean prices have increased 34,35% e 44,22% respectively, while the price of milk had an increase of only 25,91%. Corn and soybeans are the main ingredients of the diet of cows. The sector is aware of the positive correlation between milk price and profitability, because the higher the price of milk the more profitable the business.

A scarcity of rains makes it sharply difficult for the producer to routine. A FUNCEME recorded a decrease in the volume of rainfall 13% below average in the quarter from February to April of this year, which will affect the production of fodder and the need for supplementation of the animals. Supplementation has a high price and the producer cannot afford what may occur a sharp decrease in productivity. An alternative would be to irrigation of forage. However, most of the producers do not have infrastructure for irrigation.

The pandemic caused by COVID-19 also hurt the industry. Social isolation has limited the capacity building, cooperation between producers, access to credit, among other services. Outside the gate, generated instability, which led the milk and derivatives market to high volatility, which also has a reflection on the properties. In the economy, reduced by 40% the purchasing power of Brazilians above 16 years according to research by National Confederation of Industry (Cni) may de 2020. However, the payment of emergency aid of R$ 600,00 benefited from the consumption of milk and dairy products in 2020. This year, with the worsening of the loss of purchasing power and the reduction of the value of the, may lead to a contraction in demand for the product.

Situations like these, added to the threats of the semi-arid context, Impose limitations on milk production. Therefore, it is necessary to find cooperation strategies, Training, technical assistance, credit-oriented technologies to mitigate the challenges of the sector, because otherwise, many properties will close the gates.

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