Brazil: After a production record in 2020, the Pernambuco dairy chain is currently fearing a crisis

Published 2021년 9월 30일

Tridge summary

The Pernambuco dairy basin in Brazil saw a record milk production of 1.62 million liters in 2020, but producers are expecting a decrease in 2021 due to rising production costs. Despite a 31% increase in production value, reaching R$ 1.67 billion, challenges such as lack of competition and high production costs are driving some producers to leave the industry. There are efforts to exempt ICMS tax for foreign industries buying milk in the state, and a shift to beef cattle farming for more profitable opportunities. The state also saw a 16.5% increase in the production value of animal products, with records in goat farming and sheep farming, but a reduction in chicken egg production.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With a production record in 2020, producers in the Pernambuco dairy basin are already predicting a retraction result in 2021. Last year, milk production remained high and reached 1 billion and 62,000 liters, the highest volume ever recorded, although has presented a small difference of 6,500 liters, compared to the result of 2020, according to data from the IBGE's Municipal Livestock Survey, released yesterday (29). With the result, Pernambuco rose one place in the volume of milk production in 2020 compared to the previous year, occupying the eighth place. With record production in 2020, milk production in Pernambuco now fears a previous cost crisis, occupying the eighth place nationally and the second position in the Northeast, only behind Bahia. The production value, on the other hand, had a 31% jump in the period, reaching R$ 1.67 billion last year, leaving Pernambuco in seventh place in Brazil. Even with the improvement in the average milk production, the lack of competition ...

Source: Milkpoint