Brazil's Dairy Industry Overview

Brazil is recognized as a leading contributor to the global dairy market, utilizing its favorable climatic conditions and rich natural resources to generate and distribute a variety of dairy products. The dairy sector plays a vital role in Brazil's agricultural economy, supporting both local consumption and international trade.

Dairy Cattle

With approximately 16.82 million dairy cattle, Brazil ranks as a foremost nation in dairy farming. The leading regions for dairy farming include Minas Gerais, Paraná, Rio Grande do Sul, and São Paulo, all benefiting from optimal agricultural conditions.

Milk Production

Brazil boasts an annual milk production of around 34 billion liters, positioning it among the top milk producers globally. This impressive output is facilitated by the country's extensive land area and diverse climates that are ideal for dairy farming.

Milk Processing

The milk processing sector in Brazil handles about 25 billion liters per year, converting raw milk into a variety of products including cheese, butter, and milk powder meant for both domestic markets and export.

Cheese Production

With an annual production of approximately 1.5 million tonnes, Brazil demonstrates its proficiency in creating high-value dairy products like cheese.

Milk Powder and Whey Production

Brazil produces up to 300 thousand tonnes of milk powder and whey annually, catering to both local consumption and international demand.

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

Annually, Brazil exports around 600 million liters of dairy products, with primary products like cheese, milk powder, and condensed milk reaching destinations such as Algeria, Venezuela, and China. On the import side, Brazil receives about 200 million liters of dairy products each year, mainly from Argentina, Uruguay, and the United States.

Significant Events in the Dairy Industry

• Adoption of New Technologies: Investments in advanced milking machines and improved feed quality have modernized Brazilian dairy farming.
• Regulatory Changes: Introduction of new milk quality standards impacting production and processing.
• Trade Agreements: Recent deals with Asian and African countries have opened new export opportunities.
• Corporate Changes: Lactalis Brasil's acquisition of full control of its joint venture following Fonterra's exit from Dairy Partners America Brazil.
• Boycott Incident: Danone faced a boycott initiated by soybean producers due to sourcing issues.
• Price Adjustments: Dairy producers have encountered price increases due to raw material competition and low inventory levels.

As of early November, spot milk prices reached R$2.80 per liter, causing some buyers to reduce their purchases due to price escalation. Additionally, as the current G20 president, Brazil is advocating for the finalization of a significant trade agreement involving the EU and South American countries.

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

The French dairy conglomerate Lactalis has announced plans to invest 250 million reais ($41.7 million) to improve its operations in Minas Gerais, Brazil. Rabobank's report, 'A Period of Prosperity,' highlights a pivotal moment for milk supply growth across key dairy-exporting regions, including Brazil. Kyrgyzstan reduced coffee imports from Brazil in 2024.

Brazil is part of the Mercosur bloc involved in the trade deal negotiations with the European Union. The newly finalized trade agreement between the European Union and the Mercosur bloc—comprising Argentina, Brazil, Paraguay, and Uruguay—is a historic achievement.

In Brazil, the world’s largest soybean producer and exporter, consistent rainfall has alleviated drought conditions, setting the stage for a record harvest.

Modified: 2025/01/19

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