Brazilian dairy imports fall 12.5% in July

After two consecutive months of record-breaking imports, Brazil’s dairy imports lost momemtum in July due to reduced supply and escalating domestic prices.

According to data from the Secretary of Foreign Trade (Secex), Brazil purchased 185.6 million (milk equivalent) liters in the month, marking a 12.5% drop compared to June 2023. However, when compared to July 2022, the volume of imported dairy products surged by 71.7%.

Brazilian Dairy Imports Overview

Imports of powdered milk accounted for 149 million liters (milk equivalent), representing a 16% decrease from June. The previous month had witnessed a record-high import volume for this derivative.

The decrease in July’s imports can be attributed to reduced shipments from Uruguay. Despite this, powdered milk’s volume still represented slightly over 80% of overall imports.

Imports of butter and whey (contributing 0.47% and 11% of the total, respectively) also experienced a decline between June and July. These imports totaled 873 thousand and 2.5 million liters, marking volumes that were 17.5% and 106.2% higher than in July 2022.

Dairy Exports and Trade Balance

July also saw a decline in domestic dairy exports, totaling 6 million liters of milk equivalent. Within Secex data, milk powder shipments demonstrated the most significant reduction, plummeting by 77% and comprising only 1.3% of the total shipments.

The notable export contributors were condensed milk and cheese, recording volumes of 2 million and 2.4 million, respectively, in July.

Trade Balance and Financial Implications

The trade balance for July stood at 179 million liters of milk equivalent, reflecting a 12.1% decrease from the previous month. This resulted in a negative balance of US$ 91.7 million in July, marking a 12.2% reduction compared to the previous month’s figure.

Source: Plantão dos Lagos

To read the original news article, see: https://plantaodoslagos.com.br/categoria/economia/importacoes-brasileiras-de-lacteos-caem-125-em-julho/

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