As we are all noticing, milk and eggs are increasingly scarce on the market, as these items are being shipped in smaller quantities by producers, as shown by the Neogrid consulting stockout rate. There is also research, which is still ongoing, by the Center for Advanced Studies in Applied Economics (CEPEA) at the University of São Paulo (USP), showing a strong increase in prices of milk in the month of July.
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According to the survey, the unavailability of long-life milk on supermarket shelves in June was the highest achieved within a year and the second highest since January 2019. This June index was 19.4% compared to 18.8% in the previous month.
There has been a drop in milk production, which has resulted in a decrease in the uptake of food by industries and also by dairy cooperatives in more than 10% in the first half of 2022 alone, which was stated by the president of the Brazilian Association of Milk Producers (ABRALEITE), Geraldo Borges.
In addition to milk, eggs are experiencing the same problem, with a supply drop of around 19.4% in June, compared to 17% in May.
This has all been caused by a few factors:
- Drier climate, which is traditional in the off-season, which ends up harming the pastures;
- The cost increase in their production, due to some issues, such as the drought, the War in Ukraine (which is a country from which corn is imported) and also the increase in fertilizers, supplied in greater quantities by Russia;
- The market that has been more attractive for trade in animal meat than milk and eggs, especially with the high dollar, which ended up improving export earnings.
In addition to having a reduction in the volume of milk production, the high costs of this production caused many of the producers to leave the activity, according to Borges.
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