MILK SECTOR: VENETO MORE STABLE BUT STILL IN DIFFICULTY
MILK SECTOR: VENETO MORE STABLE BUT STILL IN DIFFICULTY


MILK SECTOR: VENETO MORE STABLE BUT STILL IN DIFFICULTY

The Covid-19 epidemic is still negatively affecting Veneto and Italian dairy farms.

Veneto Agriculture notes this in a new report. In the first half of this year, milk prices in our region recorded an average of 36.2 euros / hl.

The crisis due to Covid has hit many sectors of the agricultural sector hard, including that of milk , but fortunately the progressive openings of the Horeca channels (hotels, restaurants, catering) are beginning to rebalance the sales channels. This has favored a certain stability in farm-gate milk prices , even if this is not yet a real recovery.

Veneto Agriculture reports this in a new report, which takes its cue from an Ismea monitoring, where it appears that milk prices for the first half of 2021 mark an average of 36.2 euro / hl VAT for Veneto (34.4 euro / hl VAT at national level). In practice, the values are close to those of last year but with lower monthly fluctuations.

The forecasts of a further improvement for the milk market also come from the greater liveliness of the world market . In fact, on the one hand we find an increase in demand for the product from China and, on the other, a lower availability of New Zealand milk, as well as a decline in production by the more dairy European countries; these aspects that have already increased the price of milk by an average of 5% .

What situation now lies ahead for the milk market? Will the farmers be able to recover part of the lost quotas? The situation will undoubtedly emerge more clearly in the coming months, even if the prospects remain limited. In agriculture, a company's ability to stay on the market depends a lot on its past history, and this also applies to companies in the milk sector.

For its part, Veneto Agricoltura will continue to constantly monitor the liquidation price of milk to the members of Veneto dairy cooperatives, showing itself close to the producers and playing an important role in this sense. This framework includes the analysis of 2019, the latest available from the financial statements filed, which confirms 2019 as "a good year", with an increase in the weighted average price on 2018 of about 7%, reaching 48, 5 euro / hl (including VAT and quality). These values naturally take into account the differences between mountain and plain milk, between provinces and the quantity delivered.

Download the report: https://www.venetoagricoltura.org/2021/08/temi/ancora-difficolta-ma-piu-stabilita-per-il-latte-veneto/

 

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