Brasília, January 28, 2004 (Agência Brasil - ABr) - Yesterday (27), dairy cooperatives asked the Minister of Agriculture, Roberto Rodrigues, to release the R$ 200 million in loans announced by the Ministry last week to guarantee stocks of milk and dairy products.
According to the Organization of Brazilian Cooperatives (OCB), only one cooperative has so far been able to obtain a loan from the Bank of Brazil. The president of the entity, Márcio Lopes de Freitas, stated that the Minister of Agriculture guaranteed that R$ 150 million are being evaluated for liberation in the next few days.
These resources would enable the sector to stock 500 million liters, 5% of total production. According to the OCB, the majority of cooperatives hold large stocks of dairy products, and commercialization of these products could cause a further drop in the prices paid to producers. "Our interest is for there to be an equilibrium in producers' income," Freitas argued. The price currently paid to producers is R$ 0.40; R$ 0.50 would be the normal price.
According to the president of the OCB, the Parmalat crisis caused an impact on the cooperative sector, because it occurred during the period between harvests. "If this problem had occurred three months from now, the impact would not be as great," he guarantees.
For the coordinator of the OCB's Milk Chamber, Jacques Gontijo, the Parmalat crisis served to demonstrate that Brazilian producers need to organize themselves to industrialize their products.
For the purpose of reorganizing the sector, representatives of the cooperatives met yesterday in Brasília. Their goal is to form a business network, organize the sector, and establish a methodology for dairy market indicators, such as milk prices received by producers, spot market prices, and the prices of UHT (Ultra High Temperature, or extended shelf life) milk, powdered milk, and mozzarella cheese. The final step will be the creation of a new cooperative model to make the industrialization of products possible. According to the OCB, Brazil has 353 cooperatives, responsible for 40% of the dairy market.
According to the president of the OCB, Brazil has a vocation for the industrialization and exportation of condensed milk. "We have milk, sugar, and steel," Freitas affirms. In 2003, 300 thousand tons were produced, of which 30 thousand were exported. "Condensed milk could earn US$ 0.30, while producers receive US$ 0.25 for powdered milk," Freitas points out.
The barriers that stand in the way of expanding exports are conditions to maintain stocks, credit availability, and sanitary impediments imposed by importing countries. According to the OCB, Brazil has been negotiating with Mexico, the biggest importer of dairy products, for two years, but has been stymied by sanitary barriers. The countries with the largest foreign sales of the product are the Netherlands and Germany, which, together, export 1 million tons annually. (DAS)
