Minas Gerais Maintains Dominance in Brazil's Dairy Sector Amid Slowdown
As 2026 began, Brazil's dairy sector witnessed a moderated pace, but Minas Gerais continues to play a crucial role. During the first quarter of the year, the state accounted for 24.7% of all raw milk collected and processed in the country, cementing its position as the leading hub for dairy activities.
Between January and March, Brazilian industries acquired 6.78 billion liters of raw milk, with over 1.67 billion liters sourced from Minas Gerais. This performance underscores the strategic significance of the state in a sector striving for a balance between supply, demand, and profitability throughout 2026.
Despite the overall slowdown in the market, Minas Gerais showed resilience with a smaller decline compared to the national average. Milk collection in the state decreased by 3.4%, and processing fell by 3.2% compared to the fourth quarter of 2025. Nationally, these figures were 8.0% and 7.9%, respectively.
Looking at year-on-year data, Minas Gerais showed growth with a 1.6% increase in milk collection and a 1.8% rise in processing from the first quarter of 2025. This indicates continued progress over a broader time frame.
The importance of Minas Gerais is also reflected in employment figures. The dairy industry in the state employed over 35,000 formal workers in the first quarter, representing 24.4% of the national total, with a net gain of 529 new jobs during this period.
Guilherme Abrantes, president of the Sindicato da Indústria de Laticínios e Produtos Derivados no Estado de Minas Gerais (SILEMG), highlighted the structural strength of the state's dairy chain. He emphasized the need to monitor factors affecting competitiveness and sustainability.
The FIEMG bulletin suggests a gradual rebalancing of supply and demand in the coming months, influenced by variables such as off-season periods, import behavior, international prices, exchange rates, and potential climate impacts on production.
