Brazil: State hopes that the decree encouraging milk from Rio Grande do Sul will serve as an inspiration for the federal government

Published Apr 18, 2024

Tridge summary

The government of Rio Grande do Sul has implemented a new decree offering tax incentives to dairy industries that prioritize local milk over imported powdered milk, particularly from Mercosur countries like Argentina and Uruguay. This initiative aims to boost the local milk market by increasing the price paid to regional farmers and reducing the reliance on cheaper imports, thus supporting the local agriculture sector. The move has been positively received by agricultural groups and unions, though there is concern about its timing, as some producers may have already been forced out of the market due to previously low prices and high operational costs.

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Original content

With the aim of valuing the production and consumption of Rio Grande do Sul milk, as well as improving the price for producers in Rio Grande do Sul, the state government signed a decree, this afternoon, encouraging the local product. According to the acting governor, Gabriel Souza, the dairy product industries will only receive tax incentives from the Rio Grande do Sul Executive if they do not import powdered milk from other countries. Given this, the expectation is that there will be an increase in the consumption of milk produced by farmers in Rio Grande do Sul and, with this greater demand, an increase in the price paid to the producer in Rio Grande do Sul. One of the purposes is to stop the import of powdered milk from Mercosur, especially from Argentina and Uruguay. In fact, this purchase of powdered milk from neighboring countries has been a cause for complaint for some time by agricultural entities and farmers in Rio Grande do Sul, as it enters the State at a lower price ...

Source: Radioprogresso