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Last Friday, June 14, the Rafaela Rural Society was the scene of the 2nd Pasión Lechera Auction, organized by the Guillermo Lehmann Cooperative, under the auspices of the rural entity and the Association of Holand Argentine Breeders (ACHA). Mauricio Tschieder, Farm Manager of the cooperative, highlighted that the event was very dynamic and successful in terms of attendance and farm quality, although he acknowledged that prices could have been better considering the current context of the dairy sector.
“The quality of the farm presented was spectacular, with an outstanding genetic profile,” said Tschieder. In this edition, calving and calving heifers, heifers for service, calves and bulls from three recognized establishments were offered: Avelino Picco Hijos, La Luisa and Mapero SA. The average price of calving and calving heifers was $3,069,000, equivalent to 7,883 liters of raw milk, according to $389.3 per liter published by SIGLEA (Argentine Dairy Integrated Management System) for the month of May.
Despite these good numbers, Tschieder noted that “while farm prices were not bad, especially measured in liters of milk, they could have been better when compared to last year’s situation.” In the first edition of the auction, in May 2023, the advanced heifers were paid an average of $738,000, equivalent to 8,256 liters of milk (SIGLEA April 2023 was $89.39), with a maximum of $1,400,000. This year, the average price measured in liters of milk was lower, which shows that producers have not yet fully recovered from the problems suffered in recent years due to drought and macroeconomic imbalances.
Compared to last year, the situation has improved significantly. “We have very good milk prices, above 40 cents on the dollar, and today you can buy almost two and a half kilos of corn with a liter of milk,” explained Tschieder. However, he added that “perhaps one could say that with this better outlook the price (of genetics) should be better.”
. The Treasury Manager stressed the importance of the return of financing lines, although he acknowledged that this is not yet the best moment. “The payment plan makes sense again; and being able to put together tools to liquidate the payment for the products is a very important factor,” he mentioned. This financing allowed producers to access more favorable conditions than the previous year.
See alsoDreams and cares of the dairy industry in the largest sector in the country Despite expectations, Tschieder pointed out that the values obtained were in line with the genetics offered. “It is still noticeable that the producer is emerging from all the prejudices that he had to carry out with the drought, the leafhopper and the macroeconomy,” she reflected.
. Bulls, for example, averaged nearly $5,000,000, with a high of $9,000,000, while service heifers and calves also sold above expectations. “We always say that these genetics should have another value, but for market values they are very good,” concluded Tschieder.
The success of the auction, which managed to sell 100% of the property, lays the foundations for the third edition already planned for next year. According to Tschieder, this achievement is proof of everyone’s agreement with the event and the better conditions that are foreseen for the dairy sector in the immediate future.
