Overview of Brazil's Dairy Industry

Brazil stands as a significant contributor to the global dairy industry, supporting a robust infrastructure that facilitates both domestic consumption and international trade. The country is home to approximately 16.82 million dairy cattle, primarily located in regions such as Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo.

Milk Production and Processing

Ranked among the world’s top milk producers, Brazil boasts an annual production of around 34 billion liters. The processing sector manages approximately 25 billion liters annually, converting raw milk into products like cheese, butter, and milk powder, which are crucial for meeting both domestic demands and international commitments.

Production of Cheese, Milk Powder, and Whey

Cheese production is particularly noteworthy, with about 1.5 million tonnes produced each year. Milk powder and whey also hold substantial roles, with outputs reaching up to 300 thousand tonnes annually, catering to both domestic and global markets.

Key Enterprises and Notable Dairy Farms

The Brazilian dairy market features leading enterprises such as Itambé, Embaré, Cemil, and CCPR. Notable dairy farms like Fazenda Bela Vista Agropecuária, SEARA, Fazenda Santa Luzia, and Fazenda Santo Antonio significantly strengthen the industry.

Exports and Imports

Brazil exports approximately 600 million liters of dairy products annually, with major markets including Algeria, Venezuela, and China. The country imports around 200 million liters, primarily from Argentina, Uruguay, and the United States, reflecting its active role in international dairy trade.

Significant Events in the Dairy Industry

Recent significant events include the adoption of new technologies to improve dairy farming practices and regulatory changes impacting milk quality standards. New trade agreements with Asian and African nations have expanded export opportunities. The acquisition of Lactalis Brasil marks significant industry restructuring, and milk prices increased to R\$2.80 per liter. As a G20 host, Brazil plays a crucial role in trade negotiations, including the EU-Mercosur pact.

Investments and Developments

Lactalis is investing 250 million reais (approximately $24.7 million) to enhance operations in Minas Gerais, with an additional $24.3 million allocated to expand production facilities in Paraná. A Rabobank report forecasts positive growth in milk supply and exports, although the average milk price decreased by 2.7% in December 2024 compared to November, according to Cepea.

International Collaborations and Other Developments

Brazil is advancing international cooperation through Memorandums of Understanding and participation in global events. Nestlé is expanding Nescafé RTD cold coffee in Brazil, while Grupo Piracanjuba's acquisition of Natulact aims to establish a manufacturing site in the northeast region. Innovations in casein and whey production through fermentation may impact traditional dairy farming. Brazil has resumed US whey protein imports and plans to produce 'cow-free' proteins by late 2026.

Record Production Levels

In the second quarter of 2025, Brazil's processing facilities collected 6.5 billion liters of raw milk, marking a 9.4% increase from the same period in 2024. The South of Brazil led with 40.7% of the total milk collection. The country experienced a historic boost in milk production, with a 6.8% year-on-year increase in the first half of the year, the highest in over a decade. Favorable weather conditions, reduced input costs, and significant investments supported this surge. However, Rabobank warns of a potential slowdown towards the year-end with an adjusted annual production growth forecast of 6.5%.

Modified: 2025/10/06

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