Dairy sector leads countrysides profitability at Bovespa in 2007
Gazeta Mercantil 01/04/2008
The higher prices of milk - with valuation of nearly 40% in 2007 -, the increased production and the heating of this market by great acquisitions made the segment lead the profits in the São Paulo Stock Exchange (Bovespa) among the agribusiness companies last year. On the other hand, the sugar and alcohol companies and the companies of the meat segment - which represented 70% of the initial public offering of stocks (IPO's) of the sector - registered the greatest falls. According to the data from the Economática, Parmalat - controlled by Laep - was the first one of the ranking, with profitability of 1,224.01%, followed by Vigor (241.25%) and Eleva (198.85%) - the latter also operating in the segment of meats and purchased by Perdigão last October. For Agripoint's Chief Executive Officer Marcelo Pereira de Carvalho some factors that have helped pull the prices of the dairy sector up were the increase of the average income of the population and, consequently, of the internal consumption, and the increase of the international prices. The dairy sector production grew at an average rate of 4.3% from 2000 to 2005, and at 3.4% in 2006. Last year, the projected increased was 6%, reaching 27 billion liters, which puts Brazil among the six largest milk producers in the World.