The Brazilian dairy sector is expected to have a positive outlook in 2025, thanks to economic growth and expanded credit, but faces challenges in maintaining profitability due to the lack of competitiveness of Brazilian milk compared to imported milk. The dairy industry is struggling with stagnant production and a surge in imports, which have grown by 6% from January to September 2024. To remain competitive, the industry needs to reduce production costs and explore market niches with higher added value. Climate events in Brazil have also impacted production, with floods in Rio Grande do Sul decreasing milk production and high temperatures affecting production across the country.