Brazil’s dairy imports regain pace in January

Data from Brazil’s Foreign Trade Department, Brazilian imports of dairy increased by 2.8% from December to January, totaling 156.9 million liters of milk equivalent. This volume is 2.3 times greater than that registered on January/22. On the other hand, exports decreased by 30.1%, totaling only 5.7 thousand liters of milk equivalent – a quantity 63.1% lower than in 2022.

As a result, the deficit in the Brazilian dairy trade balance was close to 151.2 million liters in milk equivalent in January, 6.78 million liters in milk equivalent more than in the previous month. In terms of revenue, the balance was negative, at US$ 70.2 million, with an increase of 9.4%.

See below the track record of Brazilian dairy exports in containers from Jan 2019 to Dec 2022, according to the DataLiner service.

Brazilian dairy exports | Jan 2019 – Dec 2022 | TEUs

Source: DataLiner (click here to request a demo)

The limited internal supply, internal valuations of milk and dairy products, the decline of the dollar in the first month of the year, and more competitive external prices increased imports in January. There was a 21.3% increase in cheese imports, representing 16.2% of the total imported. The average price of imported cheese fell 9.4%, reaching US$ 8.14/kg.

Powdered milk and similar products, in turn, accounted for most imports (83% of the total). However, external purchases of powdered milk in January fell by 0.27% compared to the previous month due to the 22.3% retraction in purchases of skimmed milk powder (which totaled 42.5 million liters in milk equivalent) – although purchases of whole powdered milk (83.7 million liters of milk equivalent) rose 14.7%.

Milk cream sales retreated 16.7% in the monthly variation, and milk powder, 83%. Fluid milk shipments, which accounted for 7.2% of total exports, were the only ones that rose by 72%. Market agents expect that external prices should increase in February, but imports may remain heated due to greater competitiveness of international value.

On the other hand, limited production in the fields and elevated prices along the entire production chain may discourage exports of Brazilian dairy products.’

Source: O Presente Rural

To read the original reporting, please access: https://opresenterural.com.br/importacoes-de-lacteos-voltam-a-crescer-em-janeiro/

Sharing is caring!