Dairy Cattle and Farming Regions
Brazil is home to approximately 16.82 million dairy cattle. Key dairy farming regions include Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo, which are essential to the country's dairy farming operations.
Milk Production and Processing
Annually, Brazil produces around 34 billion liters of milk, securing its place among the world's leading milk producers. The milk processing industry in Brazil handles about 25 billion liters each year, converting raw milk into various dairy products such as cheese, butter, and milk powder.
Production of Cheese, Milk Powder, and Whey
Brazil produces approximately 1.5 million tonnes of cheese annually. The production volumes for milk powder and whey reach up to 300 thousand tonnes per year, serving both domestic and international markets.
Key Enterprises and Notable Dairy Farms
The Brazilian dairy market features several significant enterprises, including Itambé, Embaré, Cooperativa Central Mineira de Laticínios (Cemil), and CCPR (Centro de Cooperativas de Produtores Rurais). Notable dairy farms include Fazenda Bela Vista Agropecuária, SEARA, Fazenda Santa Luzia, and Fazenda Santo Antonio.
Exports and Imports
Brazil exports approximately 600 million liters of dairy products annually, with major export markets being Algeria, Venezuela, and China. The country imports around 200 million liters, primarily from Argentina, Uruguay, and the United States.
Significant Events in the Dairy Industry
- Adoption of New Technologies: Modern advancements have improved dairy farming practices.
- Regulatory Changes: Recent changes to milk quality standards have impacted production and processing.
- Trade Agreements: New deals with Asian and African nations have expanded export opportunities.
- Corporate Changes: The acquisition of Lactalis Brasil highlights significant industry restructuring.
- Boycott Incident: Danone faced challenges related to soybean producers.
- Price Adjustments: Milk prices have increased to R$2.80 per liter, affecting consumer sentiment.
- G20 Host: Brazil's role as G20 host involves substantial trade negotiations, including the EU-Mercosur pact.
Investments and Developments
Lactalis plans to invest 250 million reais (approximately $24.7 million) in Minas Gerais to enhance operations. A Rabobank report forecasts a positive growth trend in milk supply and exports. In December 2024, the average milk price in Brazil decreased by 2.7% compared to November, as reported by Cepea.
International Collaborations and Other Developments
Brazil is active internationally, signing Memorandums of Understanding to enhance cooperation and participating in global events like the inaugural World Cup of Dulce de Leche. Furthermore, Lactalis is investing $24.3 million to expand its production facilities in Paraná, celebrating a decade of operations in Brazil.
Nestlé is expanding Nescafé RTD cold coffee in Brazil to appeal to young consumers. Grupo Lala operates 29 production plants and 172 distribution centers across Mexico, Brazil, and the United States. Grupo Piracanjuba acquired Natulact, establishing its first manufacturing site in the north-east region.
A Brazilian firm is producing casein and whey through fermentation, raising concerns about impacts on dairy farming and nutrition. Brazil is seeing a rise in synthetic protein production with companies like Future Cow challenging the traditional dairy industry.
Brazilian President Luiz Inacio Lula da Silva's discussions with French President Emmanuel Macron highlight concerns over food sovereignty and fair trade regulations. Active harvesting in Brazil contributes to a maize price decline, and expectations of strong increases in Brazil, alongside a recovery in Argentina and the US, are set to underpin a broader rebound in the Americas.
Brazil has resumed US whey protein imports, restoring a crucial market. The country possesses unique advantages for producing 'cow-free' proteins, expected to be cost-effective by late 2026. Brazil is included in the new pool of countries for dairy cattle imports to Indonesia, recognized as a foot-and-mouth disease-free zone without vaccination.
Lactalis has become more price-competitive in Brazil by reducing picking errors and logistics costs. The dairy sector shows stable, significant growth in milk production. Brazil is a key supplier, with a slight rise in poultry prices linked to increased export prices. The Brazilian Ministry's Secretariat of Foreign Trade is investigating milk powder imports, with a final determination expected by November 10, 2025.
Brazil continues to be the principal market for Argentinian powdered milk exports. Brazil's role as the principal market underscores the importance of international trade for Argentina's dairy industry success.
Modified: 2025/09/03