Rising Milk Prices and Lower Feed Costs Affect Brazilian Farmers

In May 2026, Brazilian dairy farmers experienced a slight increase in milk prices and a decrease in cattle feed costs, according to the Boletim Indicadores Leite e Derivados by Embrapa Gado de Leite. The average milk price paid to producers reached R$ 2.67 per liter, marking a 0.9% increase compared to May of the previous year, and a 0.3% rise from April 2026.

The reduction in feed costs is particularly significant for producers. It required 29.9 liters of milk to purchase a 60-kilogram feed mix composed of 70% corn and 30% soybean meal in May, a decrease from April. This indicates a reduction in expenditure for the same quantity of feed, attributed to lower input costs.

Regional variations were noted, with Minas Gerais leading with the highest average milk price of R$ 2.77 per liter, reflecting a 2% monthly increase. Goiás also saw an increase of 1.6% to R$ 2.63. Conversely, Paraná experienced a 3% decrease, with prices at R$ 2.70 per liter, the largest decline among monitored states. Santa Catarina and Rio Grande do Sul saw price reductions of 2.2% and 1.1% respectively, while São Paulo's average was R$ 2.68 per liter.

On the consumer side, the dairy sector's price index increased by 0.2% in June, with a cumulative 12-month rise of 3.3%, as reported by IPCA/IBGE. Yoghurt prices experienced the highest monthly increase at 0.7%, followed by cheese at 0.5%. In contrast, UHT milk prices fell by 0.2%, and butter decreased by 0.4%. Condensed and powdered milk saw slight increases of 0.1%.

These figures suggest a balanced market where producers maintain slightly higher prices than the previous year, benefiting from reduced input costs, while consumers face moderate price adjustments for dairy products.