Market Size
Brazilian milk production is estimated at 28 billion litres, according to the Municipal Livestock Survey (IBGE, 2008). Revenues from the sale of milk contribute approximately 15 percent of Brazilian livestock GDP.
In the trade balance of Brazilian agribusiness, dairy products take a humble position, with 0.3 precent share in 2009, export volume of 69,227 tons and revenue of US$ 167,478 million.
The exports were projected at 1.18 billion gallons in 2010/2011, reaching 1.94 billion litres in 2019/2020. This could characterise impressive 64.4 percent growth in a decade.
Projections of the Ministry of Agriculture, Livestock and Supply to Dairy Products indicate a milk production of 31.80 billion litres in Brazil in 2010/2011, reaching 37.75 billion litres in 2019/2020.
The projections for consumption indicate that in 2010/2011, this should be about 27.93 billion litres, which may range from 25.90 to 29.95 billion litres in a range of 95 percent.
In 2019/2020, the projections estimate a consumption of 33.27 billion litres, or an 18.71 percent increase in consumption compared to 2010/2011. For the same confidence interval, the consumption in 2019/2020 could reach 36.29 billion litres.
Growth rate
According to information from the Ministry of Agriculture, Livestock and Supply, milk is one of the products likely to increase in production.
It may grow at an annual rate of 1.95 percent, corresponding to an output of 37.8 billion litres by the end of the projections. Consumption should grow at a rate of 1.98 percent per annum in coming years. This rate is much higher than that observed for the growth of the population.
Brazil Dairy Market Production
Brazilian milk production has also risen steadily. In 2010, it is expected to produce around 29 billion litres of milk.
In 2004, it produced 23.5 billion litres. The states of Brazil have varying climates and levels of production.
- The southeast region of Brazil is responsible for 36 percent of milk production, and the south for 31 percent (2009).
- The largest production, the major consumption centres and most of the dairy industry are concentrated in the southeast region.
- The participation of the southeast region in the total production has declined, while the participation of the south and Midwest has increased.
- The major producer states are Minas Gerais, São Paulo, Paraná, Santa Catarina, Rio Grande do Sul, and Goiás.
