Brazil to issue tax measure to support dairy sector

Milk producers have been harmed by trade deals
calendar icon 5 October 2023
clock icon 2 minute read

Since the decrees issued in 2022 that allowed the increase in the import of milk and its derivatives, Brazil's milk production chain has been struggling. In response, the Brazilian government has adopted several measures to assist dairy farmers, according to a government release.

The Chamber of Foreign Commerce (Camex) plans to intensify its inspection of products from outside Mercosur in an attempt to catch illegal practices.

The Ministry of Agriculture and Livestock (MAPA) also presented a proposal for an economic subsidy for milk producers.

On Monday, the technical teams of MAPA and the Ministry of Agrarian Development and Family Agriculture (MDA) met with the Minister of Finance, Fernando Haddad, to deal with a tax measure to increase the competitiveness of the Brazilian milk production chain.

"The government has never been careless," Minister of Agriculture and Livestock Carlos Fávaro said. "Our teams worked intensively throughout the weekend in search of the solution so that we can give an effective response to this very important sector of our economy. My message is one of commitment."

According to the executive secretary of the Ministry of Development, Industry, Trade and Services, Márcio Elias Rosa, from August last year, imports jumped from about 5 tons to 14 tons. However, since June Brazil has registered a significant drop in imports. A decline of approximately 25% is the result of the measures adopted with urgency and responsibility by the federal government.

Fávaro believes the commercial relationship with Mercosur is very positive for Brazil, but that all actions are being observed by the government, within the rules, so that milk producers are no longer harmed.

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