Brazilian dairy imports widen trade deficit.

Brazilian imports of milk, cream, and dairy products totaled 18,600 tons in June, a 26.5% increase compared to the same month in 2025, according to the new data. VIP Report from the DATAGRO LivestockAccording to the consultancy, the advance was sustained by the increased competitiveness of products originating from Mercosur. This movement reflects the high availability of raw materials in neighboring countries, the appreciation of domestic prices during the Brazilian off-season, and the strengthening of the Brazilian real against the dollar, which made foreign purchases more attractive for national industry. "This performance mainly reflects the increased competitiveness of products from Mercosur, favored by the combination of the high availability of raw materials in neighboring countries and the appreciation of domestic prices during the Brazilian off-season, in addition to the real appreciating against the dollar," explained the consultancy. DATAGROThe strong expansion of milk production in Argentina and Uruguay, with volumes close to or equivalent to historical records for the period, has also been increasing the exportable supply of both countries and favoring shipments destined for the Brazilian market. In milk equivalent, also considering butter and cheese, net imports have maintained a growth trajectory since mid-2025. In the first half of July, the trade deficit already corresponds to 7.27 million liters of milk per day, according to data from [source missing]. Secretariat of Foreign Trade (Secex)The net volume of imports increased by 49.3% compared to July 2025, showing that the competitiveness of Mercosur suppliers continues to stimulate the entry of dairy products into the country, despite the gradual recovery of national production. In value, the Brazilian trade balance for dairy products registered a deficit of approximately US$ 86.6 million in June. The result shows that the growth of imports continues to far exceed the performance of exports, keeping the negative balance at high levels. According to the DATAGROPartial data from the second week of July reinforces this scenario, with growth in external purchases in volume and revenue, as well as an increase in the average price per ton imported. "Pressure on the sector's trade balance is expected to persist in the short term, especially while the exportable supply from the main Mercosur suppliers remains high and Brazilian industry continues to resort to the external market to supplement its supply," the consultancy concluded. For more information, visit [website address – not provided in the text]. VIP Report in analysis area of DATAGRO Portal.

This text was translated by machine from Brazilian Portuguese.