Rising Industrial Competition Boosts Milk Prices in Mato Grosso
In April 2026, the price of milk in Mato Grosso, Brazil, saw a notable increase, driven by heightened competition between industries for raw materials. According to the Instituto Mato-grossense de Economia Agropecuária (Imea), the average price paid per liter of milk was R$ 2.05, marking a 12.78% increase compared to March. Despite this monthly recovery, prices remained 10.97% lower than the same period in 2025.
The rise in milk prices coincided with a decrease in the Milk Collection Index (ICAP-L), which stood at 46.46%, a drop of 1.18 percentage points from the previous month. The institute attributed this to increased competition among industries for milk during a period of reduced pasture availability, which limited the milk supply in the state.
The market dynamics indicated that the limited availability of milk directly influenced price formation. With less raw material available, industries intensified their efforts to secure milk, contributing to the increase in prices paid to producers.
Meanwhile, producers found some relief in feed costs. In April, the average price of corn was R$ 45.67 per sack, a 1.30% decrease from March. This reduction improved the exchange ratio for producers, who required 22.33 liters of milk to purchase a sack of corn, a decrease of 12.48% month-on-month.
Despite the favorable feed cost factor, production costs continued to rise. The Index of Inputs for Raw Milk Production in Mato Grosso (ILC-MT) ended the first quarter of 2026 with an average of 177.09 points, up 2.12% compared to the same period last year, marking the second-highest result in the historical series for this period.
Labor costs rose by 6.79% following a minimum wage adjustment, and expenses for bulk materials increased by 9.46% due to higher costs of forage seeds, soil correction, and diesel oil valuation earlier in the year.
The market scenario presents mixed signals. On one hand, the lower milk supply has strengthened industrial competition and supported the recovery of prices paid to producers. On the other hand, the sector continues to operate under cost pressures, with received prices still below the levels observed a year ago.
