Brazil: Dairy and Products Annual

Post estimates milk production in 2021 will decrease by 0.5 percent, to 24.85 million metric tons (MMT). In 2022, production is forecast to grow one percent, reaching 25.1 MMT. Brazil’s 2021 factory milk consumption is expected to fall 0.8 percent, to 16.51 MMT due to rising production costs and unstable dairy consumption, considering the economic uncertainties in the country. In 2022, factory consumption is expected to increase 0.9 percent, reaching 16.67 MMT. As for dairy products, 2021 saw growing production costs and lackluster demand, mainly because of rising prices and the lower household incomes. Nonetheless, production levels of cheese, butter, and milk powder (both whole and nonfat) had small increases during the year, in part due to the ending of lockdowns and the return of operations of the food service industry. In 2022, dairy production and demand should remain relatively unchanged.