Brazilian milk prices rose in July on strong UHT demand

Prices paid to Brazilian milk producers rose in July, according to Cepea. The net Brazil Average was BRL 2.8761 per litre, an increase of 4.65% from June. In real terms, after adjustment using the IPCA for July 2026, the figure was 4.96% above the level recorded in July 2025.

Cepea attributed the market conditions reported for the month to demand for UHT milk and a slower expansion of milk collection in some regions. These factors maintained competition among dairy processors. Cepea also indicated that the pace of the market may slow in the coming months.

The Cepea Milk Production Index for the Brazil Average advanced 2.38% between June and July. Despite the monthly increase, the index remained 9.3% lower on a year-to-date basis.

Operating costs changed little during July. The Effective Operational Cost for the Brazil Average edged down by 0.31%, according to Cepea. Data from the OCB showed that transactions involving mozzarella cheese and milk powder lost momentum during the month.

UHT milk prices moved in the opposite direction, rising 7.35% from June. The increase was recorded alongside the stronger demand for the product cited in Cepea's assessment of the market.

Imports also grew in July. Secex data showed acquisitions equivalent to 236.3m litres of milk, up 9.01% from June and 33.49% higher than in July 2025.