Brazilian deputies approve audit of dairy imports from Mercosur
The proposed examination covers import volumes over the past five years, the countries supplying those products and previous trade investigations. It will also seek information on possible violations of economic-order rules and the responses of the responsible authorities. Legislators want to establish how overseas purchases affect the Brazilian market and whether public bodies have properly used their monitoring and trade-defence powers.
The proposal provides for a public hearing involving the Ministry of Agriculture and the Ministry of Development, Industry, Trade and Services (MDIC). Representatives of Receita Federal, the federal revenue authority, and Anvisa, the national health surveillance agency, would also participate, alongside Embrapa, Inmetro and organisations representing producers. Material collected through the process will form the basis of a report for subsequent discussion by the parliamentary committee.
Brazilian dairy organisations contend that competition from imported powder puts downward pressure on the prices farmers receive. Producers have reported declines exceeding 20% in raw-milk payments during certain periods. Domestic output, demand, processors’ inventories and other commercial conditions also affect prices. The audit is intended to examine the contribution of imports to those movements.
The parliamentary initiative follows a trade-defence decision taken in June 2026. Brazil adopted definitive anti-dumping duties on whole and skimmed milk powder imported in bulk from Argentina and Uruguay. Gecex Resolution No. 907, dated June 3rd, established the duties for a period of up to five years. The federal government immediately suspended their application on public-interest grounds while an assessment of their effects proceeded; collection of the duties remains suspended.
Brazil produces approximately 35 billion litres of milk annually, according to industry figures cited by Brazilian media. Imported dairy products account for a smaller share of supply than domestic production, while affecting trading conditions in some processing segments. Farmers are seeking measures that would allow them to compete with imported powder on terms they regard as equitable. Other participants in the sector point to the role overseas purchases can play in supplying the market during particular periods and moderating manufacturing costs.
The dispute also concerns the effects of trade measures on processors and consumers. Alongside farmers’ objections to foreign supplies, other market participants have called for an examination of the consequences for industrial costs and retail prices. The audit will gather evidence on these issues as part of the broader review of dairy imports and the enforcement of existing trade-defence instruments.
Brazil is a strategic destination for Argentina’s and Uruguay’s dairy industries, whose exporters sell milk powder and other dairy products there. Companies supplying the Brazilian market are following the anti-dumping debate, domestic price developments and the TCU investigations. Changes to trading conditions could affect their operations. Any subsequent measures will depend on the investigation’s findings and decisions by the competent authorities.
