Milk prices for producers rose more than 5% in February.

The price of milk paid to producers registered its second consecutive increase in February 2026. Research from Cepea (Center for Advanced Studies in Applied Economics), at Esalq/USP, shows that the "Brazil Average" price of milk paid to producers rose 5.43% in the month, closing at R$ 2.1464/liter. However, the price is still 25.45% below that recorded in February 2025, in real terms (values were deflated by the IPCA of February 2026). The upward trend gained strength due to increased competition among dairies in the purchase of raw milk, in a context of decreased supply. From January to February, the ICAP-L (Milk Collection Index) fell 3.6% in the Brazil Average, influenced by results in Paraná, Goiás, São Paulo, and Minas Gerais. This decrease in milk collection is explained by a combination of two factors: on the one hand, seasonality – since the climate at this time of year tends to negatively influence the availability of pasture and increase the cost of animal nutrition; and, on the other hand, greater caution in investments in the activity – a result of the consecutive drops in milk prices throughout 2025 and the narrowing of producers' margins. It is worth noting that Cepea's research indicates that, in February 2026, the Effective Operating Cost (EOC) of the activity continued to rise, with an increase of 0.32% in the "Brazil Average". On the other hand, with the drop in corn prices and the recent appreciation of milk, the exchange rate became more advantageous for the producer at the beginning of the year. If in January the derivatives market was still unable to react, in February the scenario changed. A survey conducted by Cepea with support from OCB (Organization of Brazilian Cooperatives) shows that the reduction in the supply of raw materials and the strengthening of demand have enabled a reaction in the prices of UHT milk and mozzarella cheese, both traded in the São Paulo wholesale market. The trend is for this recovery movement to intensify throughout March – reinforcing the prospect that the appreciation of raw milk will persist in the field. 

This text was translated by machine from Brazilian Portuguese.