Brazilian dairy producers call for stricter measures to curb imports

Dairy producers and cooperatives are calling for stricter regulations from federal and state governments to curb unrestrained imports of dairy products. The sector experienced a temporary relief in imports starting in March, thanks to increased federal inspection. However, foreign purchases began to rise again in June.

“We initially believed that these measures would impact imports. But when we look at the first ten days of June, imports nearly surpassed the total recorded for May,” stated Marcelo Candiotto, president of the Central Cooperative of Rural Producers (CCPR) and vice-president of the Federation of Agricultural Cooperatives of Milk from Minas Gerais (Fecoagro Leite Minas).

Candiotto made a mention of Decree No. 11,732/23, which reduces the use of presumed PIS and Cofins credit by dairies and cooperatives that import milk, from 50% to 20%. Following pressure from the private sector, the government increased inspection of imports starting in March. Some states, such as Minas Gerais, Paraná, and Goiás, also implemented measures to reduce tax benefits for dairy importers.

The chart below shows the influx of containerized milk imports into Brazil from Jan 2023 and Apr 2024. The data comes from DataLiner.

Milk Imports into Brazil | Jan 2023 – Apr 2024 | TEUs

Source: DataLiner (click here to request a demo)

According to data from the Ministry of Agriculture, milk imports fell by 0.6% in volume in March, 14.3% in April, and 43.5% in May, compared to the same months in 2023. In terms of value, the declines were 10.1%, 22.7%, and 48.9%, respectively. In May, imports reached 10.7 thousand tons, the lowest monthly volume this year.

“The measures need to be expanded to affect not just a group of importers, but all importers, including supermarket chains, trading companies, ice cream shops, and food industries,” said Geraldo Borges, president of the Brazilian Association of Milk Producers (Abraleite). He and Candiotto spoke yesterday at the 19th Megaleite in Belo Horizonte.

Borges added that cheese imports have also increased significantly this year and believes that the reduction in tax benefits should extend to other categories within the dairy sector. According to the Ministry of Agriculture, cheese imports rose by 28.8% in value from January to May, reaching $105.9 million, and by 41.1% in volume, totaling 23 thousand tons.

“We will engage with state and federal governments to ensure that measures to discourage imports are expanded to include a broader range of dairy products, not just powdered milk,” stated Borges.

Source: Globo Rural

Click here to read the original news report: https://globorural.globo.com/pecuaria/leite/noticia/2024/06/produtores-de-lacteos-pedem-ampliacao-de-medidas-para-conter-importacoes.ghtml

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