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Brazil's raw milk prices decline for sixth consecutive month

Brazil 12.12.2023
Source: The DairyNews
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According to a recent market report from Cepea (Center for Advanced Studies on Applied Economics Department of Economy, Administration, and Sociology at Luiz de Queiroz College of Agriculture), the average price for raw milk in Brazil has experienced a continuous decline for the sixth consecutive month.
Brazil's raw milk prices decline for sixth consecutive month
The October figures revealed a 4.3% drop, reaching BRL 1.9675/$ 0,39 per liter on the net "Brazil Average," as calculated by Cepea.

This downward trend, persisting since May, is attributed to the increased domestic supply of dairy products and substantial volumes of imports. The Cepea Milk Production Index (ICAP-L) registered a 1.4% rise from August to September, indicating heightened domestic production. Concurrently, data from Secex indicates a significant 26.1% surge in Brazilian imports in October.

The surge in imports has been a prevailing factor, with the January to October 2023 period witnessing a total of 1.8 billion liters, reflecting a substantial 77.4% increase compared to the same period last year. The cumulative impact of heightened domestic production and increased imports continues to exert downward pressure on raw milk prices in Brazil.
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