Milk collection dips in Brazil, prompting rise in powdered milk imports

Brazil’s February milk collection decline prompted a new increase in the price paid to the producer as well as a rise in the importation of powdered milk to boost the domestic supply. According to Rodrigo Silva, a market analyst for Scot Consultoria, the average price paid to producers in 18 Brazilian states increased by 0.9% from the previous value on record or R$ 2.45 per liter.

Silvia explains that milk collection in February dropped by 3.1% from January 2023, at a moment when the opposite should be happening. This subversion of expectations is partially caused by the lack of rain in important milk-producing regions, harming the quality of pastures. Another factor is the increase in milk production costs at around 0.78%, driven by the re-increase in fuel prices and energy supplies costs, which saw a slight increase supported by the prices of wheat meal and pulp citrus.

With milk collection at processing hubs currently lower and the likely prospect of a continuous downward trend across the off-season, powdered milk imports have increased. Silva details that in February this year, compared to the same month last year, the growth in the importation of the product was 385.36%, reaching 13.97 thousand against 2.88 thousand tonnes in February last year.

Source: Notícias Agrícolas

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