Brazil's Dairy Industry Overview

Brazil is an essential participant in the global dairy sector, enhanced by its favorable climate and abundant natural resources. The dairy industry is a vital part of the country's agricultural economy, supporting both domestic consumption and international commerce.

Dairy Cattle

The country is home to approximately 16.82 million dairy cattle. Prominent farming regions include Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo.

Milk Production

Brazil annually produces around 34 billion liters of milk, positioning it among the leading global producers.

Milk Processing

The milk processing industry in Brazil handles about 25 billion liters per year, converting raw milk into various products like cheese, butter, and milk powder.

Cheese Production

Brazil has a cheese production volume of approximately 1.5 million tonnes annually, showcasing its strength in producing value-added dairy products.

Milk Powder and Whey Production

The nation produces up to 300 thousand tonnes of milk powder and whey annually, catering to both local and international markets.

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 about 600 million liters of dairy products each year, with significant shipments to Algeria, Venezuela, and China. The country imports roughly 200 million liters, primarily from Argentina, Uruguay, and the United States.

Significant Events in the Dairy Industry

• Adoption of New Technologies: Modern technology advancements have improved dairy farming practices in Brazil.
• Regulatory Changes: New milk quality standards have affected production and processing.
• Trade Agreements: Deals with Asian and African nations have increased export opportunities.
• Corporate Changes: The acquisition of Lactalis Brasil signifies a substantial industry restructuring.
• Boycott Incident: Danone faced challenges due to issues with soybean producers.
• Price Adjustments: Milk prices have risen to R$2.80 per liter, raising consumer concerns.
• G20 Host: As the current G20 host, Brazil is involved in critical trade negotiations, including the EU-Mercosur pact.

Investments and Developments

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

Additional Insights

In December 2024, Brazil's average milk price fell by 2.7% compared to November, according to Cepea. As the fourth-largest soy exporter to China in 2024, COFCO shipped about 6.65 million tonnes of soybeans. The potential return of Donald Trump to the White House presents challenges and opportunities for the industry, affecting exporters and processors. As part of BRICS, Brazil might benefit from strained U.S.-South African relations. China's recent trade reprisals could significantly benefit Brazilian agricultural producers.

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

Modified: 2025/03/10

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