Brazilian dairy trade: imports on the rise

According to government data released on Oct 5th, the Brazilian dairy sector sold approximately 190 million liters in milk equivalent in September, a decrease of 25 million, or about 13.2% from the previous month.

The deficit stands even greater in year-on-year terms, with the value in milk equivalent in this period being -73 million liters, representing a difference of approximately 117 million liters, or -61.6%.

This was the fifth consecutive negative variation, and the value is the second lowest in the historical series, behind only September 2016, when the balance reached -193 million.

See below the track record of both exports and imports of dairy products (HS codes 0400 to HS 0405) in Brazil. The data is from DataLiner.

Dairy exports and imports | Jan 2019 – Aug 2022 | TEUs

Source: DataLiner (click here to request a demo)

Exports remained discouraged and experienced a slight increase rather than a significant change. The volume exported increased by 0.7 million liters during the period, representing a 10.1% increase.

On the import side, there was a strong advance in negotiations, given that international prices are operating at low levels.

The month of September showed an increase of 14.8% in imports compared to the previous month, with an increase in the volume of imports of 25.4 million liters in milk equivalent.

When compared to the same period last year, there is also a significant increase in imported volumes; in September 2021, 80.1 million liters in milk equivalent were imported, while in 2022, this value went through a positive variation of approximately 146.6%, resulting in a significant increase of 117.4 million liters in milk equivalent.

This expressive increase in imported volumes and meager exports caused the second most second-greatest deficit in the Brazilian dairy sector balance on record and the greatest monthly deficit in the year so far.

Source: Compre Rural

To read the full original article, please go to: https://www.comprerural.com/balanca-comercial-de-lacteos-importacoes-seguem-em-alta/

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