Brazilian milk prices rise in January - Cepea

Prices rose for the third month in a row
calendar icon 11 March 2024
clock icon 1 minute read

The price of the milk produced in Brazil in January rose for the third month in a row, 4.5% compared to that paid to dairy farmers in the previous month, considering the net “Brazil Average” calculated by Cepea, averaging BRL 2.1347/liter, according to a recent market report from Cepea. However, this price average is still 23.3% below that registered in January/23, in real terms (values were deflated by the IPCA from Jan/24).

The lower production explains the price rise to farmers, which has been increasing the competition between dairy companies and cooperatives for suppliers. The Cepea Milk Production Index moved down 1.85% between December and January. From November/23 to January/24, it dropped 4.1%.

The dry and warm weather has been affecting the production since September last year. Moreover, limited producers’ margins have led to a decrease of investments, reinforcing the scenario of limited supply at this moment.

Players surveyed by Cepea expect milk prices to continue to move up in the next months; however, two aspects may limit increases: consumption and imports. Agents say that the final consumption of dairy products continues vulnerable to price rises. Along with that, imports are high, pressing down quotations in the domestic market.

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