The price of milk paid to producers has accumulated a 17.6% increase in the first quarter.

The price of milk paid to producers rose in March 2026 for the third consecutive month, confirming market agents' expectations that the reduction in supply would drive prices higher than in previous months. According to research by Cepea, the increase was 10.5% compared to February, bringing the "Brazil Average" to R$ 2.3924/liter. However, the price is still 18.7% below that recorded in March 2025, in real terms. In the first quarter of 2026, the accumulated increase is 17.6%, with an average of R$ 2.2038/liter, a value 23.6% lower than that recorded in the same period last year (values were deflated by the IPCA of March 2026).

Derivatives prices rose in April, but the market is showing signs of stabilizing.

Research conducted by Cepea, with support from OCB, indicated that wholesale dairy product prices in São Paulo continued to rise in April, mirroring the increase in raw material costs. With tighter inventories, negotiations between industries and distribution channels remained active throughout the month. The gradual reduction in milk production in the field since the beginning of the year, coupled with the increase in raw material prices, limited dairy processing and contributed to positive price adjustments in dairy products.

Brazilian dairy exports decline in April.

Both Brazilian dairy imports and exports decreased in April, with shipments falling more sharply. According to data from Secex analyzed by Cepea, imports fell 10% compared to March, reaching 218.38 million liters of Milk Equivalent (EqL). Shipments, in turn, registered a drop of 28.67%, totaling 3.99 million liters EqL.

Higher feed, mineral supplements, and diesel prices drive up costs in April.

The Effective Operating Cost (EOC) rose again in April, increasing by 1.10% compared to March in the "Brazil average". This result marks four consecutive months of rising production costs, accumulating a 3.24% increase this year. Increases in expenses related to nutrition, animal health, and mechanized operations influenced the rise in EOC in April.

This text was translated by machine from Brazilian Portuguese.