Milk Prices in Minas Gerais Show Signs of Recovery

The milk industry in Minas Gerais has witnessed a recent shift in pricing dynamics, as outlined in the June 2026 resolution by Conseleite Minas Gerais. According to the resolution approved on June 24, there was a uniform decrease of 2.8% in the reference prices for milk delivered in May. This adjustment affected all categories equally, with the base reference price dropping from R$ 2.6536 to R$ 2.5786 per liter.

Looking forward, the resolution projects a modest recovery of 0.5% for milk delivered in June and paid for in July. The base reference price is expected to rise to R$ 2.5910, with the average value reaching R$ 2.7753 and the highest reference value at R$ 2.6646. Although the change is slight, it indicates a positive trend.

Price changes in derivative products such as mozzarella and UHT milk have contributed to this projected recovery. In the partial period of June, mozzarella prices rose by 2.4%, and UHT milk increased by 1.3%. Condensed milk also saw a 1.3% price rise. However, the milk powder market showed mixed results, with a 0.8% increase in the previous period and a slight decrease of 0.1% in June.

An important factor influencing producer revenues is the quality-based price spread. There is a 36% difference in reference prices for those producing higher quality and volume milk. The highest quality reference milk, which includes 4.20% fat and 3.80% protein, commands a significantly higher price than the base reference.

Conseleite's findings emphasize that quality management is not just a regulatory requirement but a measurable revenue enhancer for producers. For the industry, it highlights the advantage of sourcing high-standard raw materials.