Milk and cream market in Brazil

Earlier Report Observations

Between 2018 and 2023, the volume of the milk and cream market in Brazil increased from 37 341 thousand tons to 39 608 thousand tons. This growth was supported by the ongoing concentration of milk production in key regional basins, which improved efficiency, and from 2022 onward, by the adoption of digital technologies and improved nutritional management practices that boosted output. The recovery of milk production in the southern region in 2023 further contributed to the expansion.

In monetary terms, the market value fell from $77 667 million in 2018 to $58 014 million in 2021, reflecting economic challenges such as the COVID-19 pandemic that raised production costs and reduced GDP in 2020, followed by the exit of small dairy farmers in 2021. However, high inflation in 2022, with dairy prices rising 22%, drove a sharp rebound in market value to $66 502 million in 2022 and $81 196 million in 2023, amplified by elevated feed prices for corn and soybeans.

Structural shifts, including the substitution of fresh dairy products by ultra-processed alternatives due to urbanization and changing lifestyles, along with the consolidation of production among larger players, reshaped the industry landscape without halting overall volume growth.

Production milk and cream in Brazil

In kind, 2018-2021, K t

On a global scale, Brazil ranked as the 5th largest producer of milk and cream from 2018 to 2021.

Top producers of milk and cream, 2018-2021

World map of production of milk and cream, 2018-2021

Brazil's milk and cream production declined after two years of growth. In 2021, production reached 38 703 thousand tonnes, remaining essentially unchanged from the previous year. Over the period from 2018 to 2021, production increased by 3.6%, which translates to an average annual growth rate of 1.2%. The highest production level was recorded in 2020 at 38 831 thousand tonnes, with the largest year-on-year increase occurring in 2019 at 2.9%.

Annual dynamics of production in Brazil in kind, 2018-2021, K t

In value, 2018-2021, M $ US

Milk and cream production in Brazil declined for the third consecutive year. In 2021, the output was valued at 58 032 million US dollars, representing a decrease of 14.6% compared to the previous year. From 2018 to 2021, production fell by 25.3%, equating to an average annual decline of 9.3%.

Annual dynamics of production in Brazil in value, 2018-2021, M $ US

Exports milk and cream from Brazil

Exports in kind, t

Brazil's milk and cream export volume increased for the third consecutive year. In 2021, exports amounted to 11 623 tonnes, up by 12.8% from the previous year. Between 2018 and 2021, exports grew by 80%, corresponding to an average annual increase of 21.7%.

Annual dynamics of product's exports from Brazil in kind, 2018-2021, t

From 2018 to 2021, the Philippines (accounting for 20.7% of exports in volume), Uruguay (18.6%), and the United Arab Emirates (13.1%) led the structure of Brazil's milk and cream exports in kind. Together, these three countries represented 52.5% of total export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Brazil in kind, 2018-2021

Exports in value, K $ US

After two years of growth, the value of milk and cream exports from Brazil declined. In 2021, exports amounted to 17 428 thousand US dollars, marking a decrease of 3.3% compared to the prior year. Over the period from 2018 to 2021, exports increased by 29.8%, which averages out to an annual growth rate of 9.1%. The peak value was recorded in 2020 at 18 020 thousand US dollars, with the largest year-on-year increase also occurring in 2020 at 19.2%.

Annual dynamics of product's exports from Brazil in value, 2018-2021, K $ US

From 2018 to 2021, the leading destinations for Brazil's milk and cream exports in value terms were the Philippines (23.3% of export value), the United Arab Emirates (20.4%), and the United States (7.5%). Collectively, these three markets accounted for 51.2% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Brazil in value, 2018-2021

Imports milk and cream to Brazil

Imports in kind, t

The market for milk and cream imports into Brazil showed significant volatility during this period. From 2018 to 2020, the difference between the highest and lowest import volumes was 3.4-fold. In 2021, imports amounted to 42 tonnes, showing no significant change from 2020. The lowest import volume was recorded in 2020 at 42 tonnes, with the largest year-on-year decline also occurring in 2020 at 70.8%.

Annual dynamics of product's imports to Brazil in kind, 2018-2021, t

Over the period from 2018 to 2021, imports of milk and cream into Brazil in volume terms were almost entirely dependent on Uruguay, which accounted for 95.2% of total import flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Brazil in kind, 2018-2021

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment for milk and cream imports into Brazil. Imports peaked in 2018 and reached their lowest point in 2020, with a 3.7-fold difference between these years. In 2021, import volume amounted to 26 thousand US dollars, which was 3.1% higher than in 2020. The minimum value was recorded in 2020 at 26 thousand US dollars, with the largest decline also occurring in 2020 at 72.6%.

Annual dynamics of product's imports to Brazil in value, 2018-2021, K $ US

From 2018 to 2021, Brazil's milk and cream imports in value terms were largely oriented towards Uruguay, which accounted for 93.9% of total import value.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Brazil in value, 2018-2021