Brazil dairy producers warn government ruling could favor Mercosur imports

A meeting held last Tuesday (2) brought together representatives from the Ministry of Industry and Trade, the Parliamentary Front for Agriculture (FPA), and the Brazilian Confederation of Agriculture and Livestock (CNA) to discuss the problem of dumping in Mercosur, particularly in the dairy sector.

Dumping is considered an unfair trade practice in which a country exports products at prices lower than those charged in the domestic market of the importing country, harming the competitiveness of local producers.

Since last year, the Ministry of Industry and Trade has been investigating imports of milk from Uruguay and Argentina at prices below those charged by Brazilian producers. The practice has raised suspicions of dumping and has caused concern among industry leaders.

The FPA and CNA pressed the ministry for an official position on the investigation and criticized a recent technical interpretation that no longer considers powdered milk as similar to liquid milk. This change could prevent the use of anti-dumping measures against powdered milk imported from Argentina and Uruguay.

According to Congressman Pedro Lupion, president of the FPA, the impact on the dairy production chain could be devastating. He highlighted that more than 1 million Brazilian producers depend on dairy farming, with about 80% of them being smallholders engaged in family farming, who lack the ability to compete with large international industries.

In support of producers, the City Council of Quedas do Iguaçu, in Paraná — one of the state’s main dairy hubs — approved a motion of appeal against the measure, underscoring the urgency of protecting national production.

Source: Tarobá

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