Brazilian Dairy Farms Face Challenges Amid Rising Costs and Climate Change
As of April 2026, the average national price for raw milk paid to producers in Brazil was R$ 2.66 per liter, according to data from the Center for Advanced Studies on Applied Economics (Cepea). This figure indicates an improvement compared to previous months but is still below the R$ 2.74 recorded in April 2025 and significantly less than the historical high of R$ 3.57 per liter seen in July 2022.
Despite this increase in remuneration, Brazilian dairy farmers continue to face high operational costs due to expenses such as electricity, labor, and feed supplements. These costs add complexity to the production process, requiring more efficiency and cost control from producers.
The climatic conditions further complicate production. The formation of the El Niño phenomenon could lead to higher temperatures and irregular rainfall patterns in milk-producing regions. This affects the availability and quality of pastures, which are crucial for Brazil's grazing-dependent dairy industry. Reduced forage availability can lead to lower nutrient intake for animals, impacting milk production.
Producers are urged to focus on efficient farm management practices to maintain profitability. These include planning feed strategies for dry periods, creating strategic forage reserves, monitoring technical and financial indicators, controlling production costs, and managing pastures effectively. Rotational grazing systems are highlighted as beneficial, as they can increase milk yield per hectare, improve animal productivity, and reduce supplemental feeding costs.
Investment in infrastructure and technology has become increasingly important. Vanessa Amorim Teixeira, an expert in the field, emphasizes the role of strategic fencing in pasture management, which supports rotational grazing and enhances the use of forage resources. Durable electric fences are also highlighted as tools that facilitate system implementation and reduce maintenance needs.
In an environment of high costs and climate instability, the competitiveness of dairy farms increasingly relies on efficient resource management, production planning, and vulnerability reduction. The focus for producers has shifted from merely increasing output to producing more efficiently, with greater control over every stage of the production system.
