Brazil's Dairy Industry Struggles with Imports Despite High Production

Brazil is recognized as one of the world's leading milk producers, ranking among the top five globally. The country produces between 36 and 37 billion liters of milk per year, marking an increase after nearly a decade of stagnation around 35 billion liters. Despite these impressive figures, Brazil continues to import between 6 and 7 million liters of milk equivalents daily, predominantly in the form of powdered milk and mozzarella from Argentina and Uruguay.

In contrast, Brazilian milk exports remain comparatively modest, ranging from 3 to 5 million liters per month. According to Jônadan Ma, president of the National Milk Commission of the National Confederation of Agriculture (CNA) and the Technical Committee of Dairy Farming of Faemg, the disparity is attributed to the 'Custo Brasil' or Brazil Cost, which renders local milk production more expensive than that of key international competitors. This cost disadvantage undermines the competitiveness of Brazil’s dairy industry, despite its substantial production volume and advanced technology.

Moreover, Ma points out that some imported milk arrives in Brazil at prices lower than those in the countries of origin, a practice he identifies as dumping. He argues that this creates unfair competition for domestic producers. Ma advocates for government intervention to curb such practices and to foster a level playing field for Brazilian and foreign producers.

Ma also emphasizes the importance of reducing Brazil's dependency on imports to enhance the country's food security. He warns that reliance on external markets for dairy supply heightens vulnerability to factors beyond domestic producers' control, such as international market fluctuations and currency exchange rates, which increase costs throughout the production chain.

During his discussion, Ma highlighted additional aspects crucial for the future of Brazil's dairy sector, including professional farm management, technological adoption, family succession planning, access to credit, and producer training. He believes these elements are vital for improving the efficiency and competitiveness of Brazilian dairy farming in a challenging global context.