Brazil: Dairy and Products Annual

Post forecasts that milk production in 2022 will reduce about five percent, to 23.7 million metric tons (MMT), while in 2023 it is expected to grow around 3.6 percent, reaching 24.5 MMT. Milk consumption in Brazil is expected to fall around four percent, but recover in 2023 by three percent. For dairy products like cheese, milk powder and butter, production is set to reduce in 2022 by between one and five percent, due to elevated production costs, low milk availability and reduced consumer demand. Part of this fall in production will be recovered in 2023, as milk availability increases and consumer demand expands. The consumption of such products will experience a drop between three to six percent in 2022, but is expected to recover in 2023. The Brazilian dairy sector will continue facing the challenges of high production costs in 2023, as well as unpredictable weather and economic conditions.