Brazil Proposes Minimum Milk Price to Stabilize Dairy Sector
The Brazilian Congress is currently examining a proposal that could significantly impact the dairy sector. The proposed legislation seeks to establish a minimum price of R$ 2.50 per liter for milk, aiming to provide stability for producers amidst market volatility.
The bill, known as Projeto de Lei 913/26, introduces a shift in how milk prices are determined, moving away from market-based fluctuations to a system where the average cost of production becomes the primary reference for setting prices. This change is intended to ensure more predictable income for dairy farmers and to stabilize the supply chain.
According to the proposal, the Ministry of Agriculture and Livestock would be required to consult with technical bodies and industry representatives at least 30 days before setting the price. This initiative is designed to implement a technical framework for price determination rather than relying solely on market dynamics.
Data from the Centro de Inteligência do Leite, part of the Empresa Brasileira de Pesquisa Agropecuária (Embrapa), indicates that the average net price paid to producers was R$ 2.51 per liter in 2025. Historically, this price has ranged from R$ 2.20 per liter in 2017 to R$ 2.76 per liter in 2022. These figures highlight the volatility that the new pricing mechanism aims to address.
The bill proposes amendments to Decreto-Lei 79/66, which governs the policy on minimum prices for agricultural products. Should the proposal progress through Congress, it will be reviewed by the committees on Agriculture, Livestock, Supply, and Rural Development, as well as the Constitution and Justice and Citizenship Committee, before requiring approval from both the Chamber of Deputies and the Senate.
Deputy Cobalchini (MDB-SC), the author of the proposal, emphasizes the need for improved criteria in setting minimum milk prices to ensure economic security for rural producers and stability for the entire dairy production chain.
This legislative move addresses a crucial issue for the dairy sector: balancing the need for predictable producer compensation with the fluid dynamics of a complex supply chain.
