Milk and Dairy Market in Brazil faced high input prices
Cow Milk Butter
Cream Cheese
Francielle Rozzatti
Published Oct 16, 2020
As the input prices increased, the cost of producing milk and its derivatives, reaching end customers also increased. According to the Department of Rural Economy (Deral), the increase in the price of soy and corn used in animal feed is one of the major reasons for inflating the input prices. In Paraná, this year, there was an increase of 51% compared to 2019 in the price of milk purchased by the consumer. This had a subsequent impact on the prices of derivatives, like cheese and yoghurt. The increased prices were not sufficient enough to cover the increase in the cost to the producer. The feed prices have increased by 53% as a result of the 84% increase in the price of soybean meal. In addition to the increase in the value of grains, producers faced drought, which affected the quality of the pasture. Even with the crisis, pandemic and drought, the sector registered an increase in exports. 25% increase in export revenues and a 24% increase in volume was recorded in 2019.
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