Brazilian dairy sector predicts positive 2025, but with challenges

Published 2024년 10월 29일

Tridge summary

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

Original content

The Brazilian dairy sector is projecting a positive 2025, but with some challenges to maintaining the profitability of the activity in the medium term. The projection, based on studies led by Embrapa Gado de Leite, was discussed on the morning of Tuesday (10/29) between leaders of the industrial sector and producers from Rio Grande do Sul during the monthly meeting of Conseleite, at the headquarters of the Dairy Industry Union of RS (Sindilat/RS), in Porto Alegre (RS). In a dense presentation full of reflections that dialogue with the reality of Rio Grande do Sul, the economist and researcher at Embrapa Gado de Leite, Glauco Carvalho, warned that the stability of milk prices has been maintained by economic growth projected at 3% of GDP for 2024, supported by the expansion of credit, household consumption and government spending. However, greater boldness in investments is necessary to sustain development in the long term, warns Carvalho. In the dairy sector, there are real threats ...

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