Cheese Industry Provides Stability for Paraná Dairy Farmers

Dairy producers in Paraná, Brazil, are increasingly focusing on cheese production as a strategic response to market challenges affecting the traditional dairy sector. According to a report by Embrapa, cheese has shown a 5% increase in volume and a 6.3% rise in revenue in the first half of the year. This shift is partly due to cheese's longer shelf life, which allows producers to engage in better long-term planning and negotiation.

Some producers have fully integrated their operations, directing all their milk to their own regulated cheese production facilities. This vertical integration strategy is gaining traction as it provides more control over the production process and market pricing.

Meanwhile, the local dairy sector is facing competitive pressures from imported milk powder, particularly from Mercosur countries. The Confederação da Agricultura e Pecuária do Brasil (CNA) is investigating potential trade and tax irregularities in these imports, which have been growing at an annual rate of 17.3% post-pandemic. These imports are widely used in the chocolate, ice cream, and bakery industries, further impacting local milk prices.

In response to these challenges, smaller producers are advised to focus on niche markets with high-value products rather than competing on volume. This includes emphasizing cost control, quality, and products with regional characteristics, which can create unique market opportunities.

To support this regional branding effort, the Prêmio Queijos do Paraná has been established, focusing on certifying high-quality artisanal cheese producers in collaboration with Sistema FAEP, Sebrae, Sindileite, and IDR-Paraná. The award is now in its second edition, reflecting growing interest in premium cheese production.