Embrapa Dairy Cattle: 2022 generated major impacts on the dairy chain in Brazil

The year 2022 was marked by events that impacted the Brazilian milk chain. The year began with a reduction in the effects of the pandemic: rising vaccination rates, a reduction in cases and deaths from Covid 19 and a recovery in the economy. But, as early as March, the outbreak of war between Russia and Ukraine shook economies around the world. As they are major global suppliers of inputs (grains, fertilizers and oil), the war provoked a global energy crisis, bringing, among other consequences, cost inflation in general. In Brazil, a considerable increase in milk production costs, associated with the off-season, resulted in an inflation of dairy products that reduced its consumption. In the second half, the political scenario generated exchange rate volatility and increased the level of uncertainty. And the possibility of a global recession has increased insecurity in the markets. With all this, the scenario for the dairy sector at the end of the year is still complicated. ...