While Brazil's dairy farms may be getting fewer in number, they're producing more than ever before, cementing the nation's status as a global powerhouse where a 2.5% production increase in 2022 contributed to its rank as the world's fourth-largest milk producer.
Key Takeaways
- In 2022, Brazil produced 35.6 billion liters of raw milk, marking a 2.5% increase from the previous year
- Brazil's milk production reached 24.4 million metric tons in 2021, positioning it as the world's fourth-largest producer
- The state of Minas Gerais accounted for 26.5% of Brazil's total milk production in 2022 with 9.4 billion liters
- Brazil consumed 178 liters of milk per capita in 2022, down from 180 in 2021
- Fluid milk consumption totaled 24 billion liters in 2022
- Cheese consumption reached 5.5 kg per capita in 2022, up 3%
- Brazil exported 85,000 tons of milk powder in 2022, mainly to South America
- Dairy exports value reached USD 300 million in 2022, up 15%
- Cheese exports totaled 25,000 tons in 2022, primarily to Venezuela and Philippines
- Raw milk producer price averaged BRL 2.25 per liter in Dec 2022
- Retail price of fluid milk was BRL 5.80 per liter in 2022 average
- Cheese wholesale price reached BRL 45/kg for mozzarella in 2022
- Brazil has 1,200 dairy processing plants, with top 10 controlling 60% market share in 2022
- Nestlé Brazil produced 5 billion liters milk equivalent in 2022
- JBS acquired 3 dairy plants in 2022, boosting capacity to 2 billion liters/year
Brazil's dairy industry continues to grow through increased production and farm consolidation.
Consumption and Demand
- Brazil consumed 178 liters of milk per capita in 2022, down from 180 in 2021
- Fluid milk consumption totaled 24 billion liters in 2022
- Cheese consumption reached 5.5 kg per capita in 2022, up 3%
- Yogurt consumption grew to 15 liters per capita in 2022
- UHT milk accounted for 85% of fluid milk consumption in urban Brazil in 2022
- Total dairy product consumption value was BRL 120 billion in 2022
- School milk program distributed 1.2 billion liters to 11 million students in 2022
- Per capita butter consumption was 1.2 kg in 2022
- Milk powder consumption in food industry was 300,000 tons in 2022
- Plant-based milk alternatives consumption rose 25% to 500 million liters in 2022, impacting dairy demand
- Urban households consumed 92% of Brazil's fluid milk in 2022
- Cheese demand in pizzas and snacks drove 4% growth in 2022
- Per capita fresh cheese (minas) consumption was 3 kg in Minas Gerais 2022
- Total yogurt market volume was 1.8 billion liters in 2022
- Dairy consumption in Northeast Brazil was 140 liters per capita, lowest nationally in 2022
- Drinking milk sales volume fell 2% to 22 billion liters in 2022 due to inflation
- Sweetened condensed milk consumption was 1.5 kg per capita in 2022
- Ice cream milk equivalent consumption hit 4 kg per capita in 2022
- Organic dairy consumption grew 15% to 200 million liters equivalent in 2022
- Low-fat milk demand increased 10% to 8 billion liters in 2022
- Regional disparity: South consumes 220 liters per capita vs 120 in North, 2022
- Dairy in household budget was 8.5% of food spending in 2022
- Fermented milk drinks consumption 12 liters per capita 2022
- Total cheese imports for consumption equivalent to 100,000 tons in 2022
Consumption and Demand Interpretation
While Brazil's overall milk glass is half-empty with a slight dip in per capita drinking, its cheese plate is looking fuller and its yogurt cup is runneth over, proving the nation's dairy cravings are simply shifting shape rather than drying up.
Exports and Imports
- Brazil exported 85,000 tons of milk powder in 2022, mainly to South America
- Dairy exports value reached USD 300 million in 2022, up 15%
- Cheese exports totaled 25,000 tons in 2022, primarily to Venezuela and Philippines
- Brazil imported 250,000 tons of dairy products in 2022, 60% milk powder from New Zealand
- Sweetened condensed milk exports were 40,000 tons in 2022 to Middle East
- Brazil's dairy trade surplus was USD 50 million in 2022
- Milk powder exports to Venezuela hit 30,000 tons in 2022
- Imports of whey powder reached 50,000 tons for feed industry in 2022
- Cheese imports from Argentina were 15,000 tons in 2022
- Brazil exported 10,000 tons of butter to Africa in 2022
- Total dairy import value USD 800 million in 2022
- Skimmed milk powder imports 180,000 tons in 2022
- Exports to China grew 20% to 5,000 tons dairy in 2022
- Brazil's share of global dairy exports was 1.2% in 2022 by volume
- Whole milk powder exports declined 10% to 20,000 tons in 2022 due to logistics
- Dairy imports from EU totaled 30,000 tons in 2022, mainly premium cheeses
- Export destinations: 40% South America, 25% Asia for Brazilian dairy 2022
- Import tariffs on milk powder averaged 14.8% in 2022
- Brazil exported 8,000 tons of yogurt to neighbors in 2022
- Dairy trade volume with Mercosul was 100,000 tons in 2022
Exports and Imports Interpretation
Despite impressive sales of sweetened treats and cheese to our neighbors, Brazil's dairy story remains one of a heavyweight importer reluctantly powdering its nose with New Zealand's finest while still managing to squeak out a modest trade surplus.
Industry Players and Structure
- Brazil has 1,200 dairy processing plants, with top 10 controlling 60% market share in 2022
- Nestlé Brazil produced 5 billion liters milk equivalent in 2022
- JBS acquired 3 dairy plants in 2022, boosting capacity to 2 billion liters/year
- Itambé cooperative had 2.5 million associates supplying 4 billion liters in 2022
- BRF dairy division revenue BRL 10 billion in 2022
- 70% of milk collected by cooperatives in South Brazil 2022
- Tetra Pak supplies packaging to 80% of UHT milk producers in Brazil 2022
- Laticínios Bela Vista processed 1.8 billion liters in 2022
- Average dairy plant capacity 30 million liters/year, 1,000 large plants in 2022
- Foreign investment in dairy USD 500 million in 2022, led by Danone
- 45% of producers are family farms under 50 cows in 2022
- Aurora cooperative milk volume 1.2 billion liters 2022
- Duas Rodas flavors 40% of Brazilian yogurts in 2022
- Number of cooperatives 1,100 handling 50% milk in 2022
- Vigor (Bunge) market share 12% in cheeses 2022
- Small processors (<10M liters/year) 60% of plants but 20% volume 2022
- Lactalis Brazil (Parmalat) capacity 3 billion liters 2022
- Tech investment in farms: 20,000 with sensors 2022
- Women lead 30% of dairy farms in Brazil 2022
- Top 5 firms: Nestle 20%, Itambe 15%, Vigor 12%, Bela Vista 10%, Lactalis 8% share 2022
Industry Players and Structure Interpretation
While Brazil's dairy landscape presents a vast mosaic of 1,200 processors and a backbone of family farms, the milk is increasingly flowing through a powerful pipeline dominated by a handful of giants and cooperatives, all racing to bottle, brand, and export this white gold.
Prices and Market Value
- Raw milk producer price averaged BRL 2.25 per liter in Dec 2022
- Retail price of fluid milk was BRL 5.80 per liter in 2022 average
- Cheese wholesale price reached BRL 45/kg for mozzarella in 2022
- Milk production costs rose 12% to BRL 2.40/liter in 2023 Q1
- UHT milk retail price averaged BRL 6.20/liter in supermarkets 2022
- Export price of skimmed milk powder was USD 3,200/ton FOB in 2022
- Farmgate milk price in Minas Gerais was BRL 2.15/liter average 2022
- Butter market price BRL 38/kg in 2022
- Yogurt retail price averaged BRL 12/liter in 2022
- Milk CPI index rose 8.5% in 2022
- Sweetened condensed milk wholesale BRL 15/kg in 2022
- Industrial milk price BRL 2.50/liter in São Paulo 2022
- Cheese export price USD 4,500/ton in 2022
- Feed cost represented 55% of milk production expenses at BRL 1.20/liter 2022
- Retail pasteurized milk price BRL 5.50/liter average 2022
- Milk powder import CIF price USD 3,800/ton 2022
- Minas cheese farm price BRL 35/kg in 2022
- Dairy sector revenue totaled BRL 150 billion in 2022
- Labor costs in dairy production 15% of total at BRL 0.35/liter 2022
- Whole milk powder wholesale BRL 25/kg 2022
- Fuel costs impacted milk transport by 20% increase to BRL 0.15/liter 2022
- Market value of Brazilian dairy industry USD 25 billion in 2022
Prices and Market Value Interpretation
Brazil's dairy farmers are getting squeezed like a teat, selling raw milk for BRL 2.25 while consumers are paying up to BRL 6.20 at retail, with most of the markup getting digested by the costs of feed, fuel, and everything in between.
Production Statistics
- In 2022, Brazil produced 35.6 billion liters of raw milk, marking a 2.5% increase from the previous year
- Brazil's milk production reached 24.4 million metric tons in 2021, positioning it as the world's fourth-largest producer
- The state of Minas Gerais accounted for 26.5% of Brazil's total milk production in 2022 with 9.4 billion liters
- Paraná state produced 3.2 billion liters of milk in 2022, representing 9% of national output
- Average daily milk production per cow in Brazil was 5.8 liters in 2022, up from 5.5 liters in 2020
- Brazil had 1.2 million dairy farms in 2022, a decline of 5% from 2020 due to consolidation
- Raw milk production costs in Brazil averaged BRL 2.10 per liter in 2022
- In 2023 Q1, Brazil's monthly milk production averaged 2.9 billion liters
- Southern Brazil contributes 45% of national milk production, led by Rio Grande do Sul with 4.1 billion liters in 2022
- Brazil's buffalo milk production was 450 million liters in 2022, mainly in Pará state
- Milk production in Goiás state reached 2.8 billion liters in 2022, up 4%
- Santa Catarina produced 2.9 billion liters of milk in 2022
- Brazil's total dairy cow herd was 16.5 million heads in 2022
- Average farm size for dairy in Brazil increased to 12 hectares in 2022 from 10 in 2019
- Industrial milk processing capacity in Brazil was 40 billion liters annually in 2022
- Brazil's fluid milk production was 28 billion liters in 2022
- Pasteurized milk output in Minas Gerais hit 7.5 billion liters in 2022
- Brazil imported 120,000 tons of milk powder in 2022 to supplement local production
- Concentrated milk production reached 1.2 billion liters in 2022
- Organic milk production in Brazil grew to 150 million liters in 2022
- São Paulo state milk production was 2.1 billion liters in 2022, down 1%
- Brazil's milk yield per hectare improved to 4,200 liters in 2022
- Total cheese milk equivalent production was 8 billion liters in 2022
- Yogurt base milk production hit 2.5 billion liters in 2022
- Butterfat content in Brazilian milk averaged 3.6% in 2022
- Brazil's A2 milk production started at 50 million liters in 2022 pilot programs
- Milk production forecast for 2023 is 36.5 billion liters, up 2.5%
- Northeast Brazil milk production was 3.8 billion liters in 2022 despite droughts
- Automated milking systems on 15,000 Brazilian dairy farms in 2022
Production Statistics Interpretation
Brazil's dairy sector is moo-ving forward with impressive scale and technological adoption, yet it's clearly being pulled in two directions: consolidating into fewer, more productive farms while still relying on a vast bovine workforce whose per-cow output remains, frankly, a bit udderly modest on the global stage.
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