The dairy industry in Rio Grande do Sul, Brazil, faced a sales decline of nearly 4% from March 2023 to February 2024, with total sales dropping to R$16.61 billion, as per State Revenue data. The decline was largely due to a drop in internal transactions. The industry also saw a significant impact on powdered milk demand, with over half of the state's demand being met by imports. The RS Dairy Industry Union believes that new government rules limiting tax benefits for buyers of out-of-state inputs could benefit local producers. The union also emphasized the importance of maintaining tax incentives and reviewing the ICMS rate to prevent the dismantling of tax equivalences with other producing states.