Producer may suffer losses from the spot milk market

Since the beginning of the pandemic caused by the Coronavirus (Covid-19), the Association of Dutch Cattle Breeders of Rio Grande do Sul (Gadolando) has expressed concern that the milk produced by rural producers be collected by industries. At the beginning of April, the entity was in contact with industry representatives who guaranteed the maintenance of activities with producers.

According to the president of Gadandondo, Marcos Tang, in relation to cheeses, the vast majority of them are destined for Fast Food or sold in small markets and roadsides, where sales are lower. Thus, the main destination of the product has been to sell the drink, mostly UHT, seeking to make all the revenue from this product. “Milk becomes expensive for the consumer and we, producers, remain the same, with the risk of lower prices”, he observes.

For Tang, this fact can lead to two major problems. The first is the spot milk market, the one that is traded between industries. “We understand the desperation of those who only make cheese and cannot sell it, however, it turns out that this milk that goes from one company to another is a product without traceability or with origins that are difficult to control, causing an increase in supply and competition with traditional suppliers tracked”, he highlights.

The president of Gadandondo emphasizes that the entity remains vigilant and requests the commitment of industries so that the collection is maintained. “We couldn’t bear not selling our product even for a few days. We have already had the drought punishing us for 6 months. Once the pandemic is over, we will continue our fight against spot milk. Milk must come from the cow's udder to the cooler, to the accredited dairy truck where the producer is registered, passing on to industrialization and commerce. Everything tracked”, concludes the director.

Source: agrolink

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