Imports of Brazilian dairy products decline in July

According to the Milk Bulletin, released by Cepea (Center for Advanced Studies on Applied Economics), Brazilian imports of dairy products fell 9.3% in July compared to June, to 10,100 tons, the lowest monthly volume since March 2018.

For the agency, the drop was influenced by the reduction in purchases of milk powder, as the product represents about 55% of total dairy products purchased by Brazil abroad. Imports of milk powder fell 13.8% compared to June, totaling 5,500 tons in July.

Uruguay reduced the volume of milk powder negotiated with Brazil by nearly 50% compared to June/19, totaling 2,600 tons last month. On the other hand, the volume of butter imported by Brazil in July increased 65% compared to the previous month, totaling 427 tons. Argentina and New Zealand were the main exporting countries of this derivative.

Brazilian exports of dairy products totaled 1,800 tons in July, an increase of 19% compared to June. Condensed milk and sour cream were the products with the largest share in the total shipped by Brazil, with increases of 40% and 45%, respectively, compared to sales made in the previous month. In volume, 553 tons of condensed milk and 581 tons of milk cream were exported in July.

The following chart, made from DataLiner data, shows Brazilian dairy exports from January 2015 to June 2019:

Source: Datamar

In values, the balance of trade decreased 5.6% from June to July, registering a deficit of US$31m in the trade balance, a difference between the total spent on imports of US$35m, and the amount received by exports of US$4m. In volume, the deficit was 8,000 tons, down 13.8% in the same comparison.

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