The Brazilian trade balance for dairy products showed the best results in six years

The Brazilian trade balance for dairy products showed a deficit of US$ 378.84 million in 2021, according to Secex.

Nonetheless, the consultancy firm Scot Consultoria clarified that it was the industry’s best result recorded since 2015 despite the negative balance. The figure is 22.9% higher than 2020 and 8.9% higher than 2019.

According to analyst Sophia Honigmann, the positive performance occurred on account of a decrease in imports followed by increased exports.

Dairy imports

In the year-to-date, import rates fell 21.7% in volume and 16% in terms of costs compared to 2020. That was the lowest volume recorded in the last seven years (137.7 thousand tons).

In the first semester, the volume of imported products grew 36.74% compared to the previous year. On the other hand, the second semester showed a 48.6% decrease in imported volume.

Honingmann also said that according to the Scot Consultoria’s Uptake Index for the year, Brazilian milk intake was 1.1% lower than that recorded in 2020.

In a text published by the consultancy, she explains that the volume of raw milk purchased from January to September (latest data available) decreased by 1.4% compared to 2020.

“This factor indicates that there was less raw material available,” she writes. “However, the weakened Brazilian economy and fragile domestic demand, combined with highly appreciated dollar levels, prevented imports from increasing.”

Check below for the figures of Brazilian dairy imports and exports from 2018 onwards. Data are from DataLiner:

Brazilian Dairy Imports and Exports | Jan 2018 to Nov 2021 | WTMT

Source: DataLiner (click here to request a demo)

Countries and products

Argentina and Uruguay were among the two countries that supplied the most dairy products, accounting for 55.4% and 33.9% of the imported volume, respectively. In total, 89.3%  came from our neighbors.

The main imported product was powdered milk (75.7 thousand tons), followed by cheese (31.9 thousand tons) and whey (20.2 thousand tons).

In terms of powdered milk, the average price in 2021 was US$3,252.00 per ton, representing a 9.7 percent increase over the price in 2020, which was US$2,963.00/ton.

“In comparison, the kilo in the domestic market in 2021 was quoted on average at R$23.57, or US$4,372.69 per ton, based on last year’s average exchange rate of R$5.39 per dollar.” “That is, the imported product costs 25.6 percent less than the domestic product.”

 Exports

The export of dairy products in 2021 increased both in volume and revenue, 18.5% and 1.3%, respectively, compared to 2020.

The country shipped 38,800 tonnes, the highest volume since 2016, owing primarily to low domestic demand and high exchange rates.

The main product exported was powdered milk, accounting for 40.5% of the total dairy products shipped. In 2021, Venezuela was the main buyer of Brazilian dairy products.

Source: Canal Rural

To read the full original article please visit:

https://www.canalrural.com.br/noticias/pecuaria/leite/balanca-comercial-de-lacteos-foi-a-melhor-em-seis-anos-diz-consultoria/

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