Milk Prices in Brazil See Eighth Consecutive Monthly Increase

Brazil 07.08.2024

Source: The DairyNews

Cepea surveys indicate that milk prices in Brazil experienced an eighth consecutive month of growth in June, though at a more modest rate. The month-on-month increase was 1.3%, bringing the net "Brazil average" price to BRL 2.7524 per liter, which is 3.25% higher than in June 2023.

Milk Prices in Brazil See Eighth Consecutive Monthly Increase

However, the average price for the first half of the year, BRL 2.46 per liter, is 14.3% lower than that of the same period last year.

The slower price increase in June 2024 can be attributed to a greater-than-expected supply increase in Brazil. Despite crop delays in the South and dry weather conditions in the Southeast and Central-West regions, milk production has been on the rise. This growth is driven by producers' investments in animal nutrition, encouraged by profit increases in recent months. The Cepea Milk Production Index (ICAP-L) increased by 4.14% in June.

In addition to increased production, dairy product imports rose by 22% from May to June, totaling 182 million liters, according to Secex data. Although this figure is almost 14% lower than the same period last year, imports for the first half of this year are 1.4% higher.