Brazil’s dairy prices fall while milk powder remains relatively stable

A seasonal expansion in milk production has left dairy processors relatively well supplied, putting downward pressure on spot-market prices. The increased availability of milk has also contributed to weaker prices across other dairy products.

Imports remained high alongside the increase in domestic supply. September’s purchases amounted to 243 million litres in milk-equivalent terms, setting a record for that month.

Indications from the Conseleites pointed to lower farmgate milk prices in every state, also linked to the summer production season’s expansion in supply. Rio Grande do Sul registered the largest decline, followed by Paraná, Minas Gerais and Santa Catarina.

Elsewhere in the livestock market, finished-cattle and calf prices continued to rise. The report attributed those increases to the seasonally reduced availability of animals for slaughter during the off-season, despite supplies from feedlots.

Feed-crop prices moved in different directions. Maize became cheaper, reversing its previous price trend, whereas soyabean prices continued to increase.

The real weakened against the dollar during October, a movement the report linked to the election results. The expectation for GDP growth in 2026 stood at 1.80%, down by 0.06 percentage points and the lowest reading in the series.