Frederico Westphalen Sets a Milk-Production Record with Half the Producers
Frederico Westphalen’s milk sector expanded substantially over the past decade, reaching a production record in 2025 while involving roughly half the number of producers. The municipality’s rise coincided with a co-ordinated effort involving producers, Emater, credit co-operatives, public authorities and other industry organisations.
The participants joined the initiative when local production was falling and prices were considered insufficiently attractive. “We sat down that day and decided to make a change, to work together to give dairy farming a new outlook. A decade later, the seed has borne fruit,” said agronomist Figueiredo.
The municipality’s position in the regional ranking also changed. In 2015, Frederico Westphalen was not among the region’s ten largest milk-producing municipalities. In 2025, it ranked fourth. Figueiredo said it had the potential to reach third place.
The increase in production was accompanied by higher receipts for local producers. Their gross income in 2025 totalled 58.3m reais after adjustment for inflation as measured by the IPCA. The corresponding figure in 2015 was about 19m reais, representing real growth of 306%.
Figueiredo said the income could have a multiplier effect across the municipal economy, including retail, services, machinery, farm inputs and transport. He estimated that more than 150m reais could circulate in those areas as a result. The figures refer to the value received by producers and the potential broader circulation cited by Figueiredo.
Frederico Westphalen’s performance differed from the state-wide trend. While the municipality more than doubled its milk production during the period, Rio Grande do Sul’s total production fell by 12.5%. The local sector nevertheless continues to face labour shortages and high production costs.
Figueiredo said tighter margins had made scale and productivity necessary for remaining in dairy farming. “Today the profit is measured in cents, so the producer has to accelerate scale and productivity to stay in the activity,” he said. The organisations involved in the Milk Pact are reviewing targets set in 2016 and maintaining technical support and co-ordination among the different parts of the supply chain.
