The recent Mercosur-European Union agreement, heralded on June 6, introduces significant changes to Brazil's agricultural sector, particularly affecting dairy farmers in Rio Grande do Sul. This free trade pact, which gradually reduces taxes on dairy products and milk powder, aims to bolster European dairy exports to Brazil. However, the Brazilian Dairy Industry and Dairy Products Union (Sindilat) expresses concerns over the potential negative impact on local dairy producers, given the superior European product quality and subsidies, alongside a surplus in milk production in Europe. Additionally, the agreement raises worries about the importation of milk from Argentina and Uruguay, which undersells Brazilian milk. Despite these challenges, Sindilat anticipates benefits from reduced tariffs on dairy production equipment from Europe. However, the industry also contends with a stain from a milk adulteration case in Taquara, viewed as an isolated incident amidst improved federal and state legislation against dairy fraud.