Brazil's Dairy Industry Overview

Brazil stands as a prominent figure in the global dairy industry, leveraging its advantageous climate and abundant resources to drive significant dairy production and trade. As a crucial component of Brazil's agricultural economy, the dairy sector supports local consumption and international commerce.

Dairy Cattle

Brazil hosts approximately 16.82 million dairy cattle. The prime dairy farming regions include Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo.

Milk Production

Annually, Brazil produces about 34 billion liters of milk, positioning itself as one of the leading milk producers worldwide.

Milk Processing

Brazil's milk processing industry manages about 25 billion liters per year, transforming raw milk into various products such as cheese, butter, and milk powder.

Cheese Production

With around 1.5 million tonnes of cheese produced annually, Brazil showcases its capability in producing value-added dairy products.

Milk Powder and Whey Production

Brazil generates up to 300 thousand tonnes of milk powder and whey each year, meeting both domestic and international demands.

Key Enterprises in the Dairy Market

• Itambé
• Embaré
• Cooperativa Central Mineira de Laticínios (Cemil)
• CCPR (Centro de Cooperativas de Produtores Rurais)

Notable Dairy Farms

• Fazenda Bela Vista
• Agropecuária SEARA
• Fazenda Santa Luzia
• Fazenda Santo Antonio

Exports and Imports

Brazil exports approximately 600 million liters of dairy products each year, with significant shipments to countries like Algeria, Venezuela, and China. Conversely, it imports about 200 million liters, primarily from Argentina, Uruguay, and the United States.

Significant Events in the Dairy Industry

• Adoption of New Technologies: Modern advancements have enhanced dairy farming practices in Brazil.
• Regulatory Changes: Introduction of new milk quality standards has influenced production and processing.
• Trade Agreements: New deals with Asian and African nations have expanded export avenues.
• Corporate Changes: Lactalis Brasil's acquisition of its joint venture marks major industry restructuring.
• Boycott Incident: Danone faced market challenges due to coordination issues with soybean producers.
• Price Adjustments: Milk prices escalated, with R$2.80 per liter cited as a recent high, prompting consumer concerns.

Brazil, as the current G20 host, is negotiating crucial trade agreements, notably the EU-Mercosur pact, highlighting its critical role in international trade.

Investments and Developments

The French dairy group, Lactalis, is planning to invest 250 million reais ($41.7 million) to enhance operations in Minas Gerais. A Rabobank report underscores a promising growth trend for milk supply and exports.

Sources: Brazilian Institute of Geography and Statistics (IBGE), Ministry of Agriculture, Livestock, and Food Supply (MAPA), Brazilian Dairy Association (Viva Lácteos).

Modified: 2025/02/05

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