Minister says public procurement can alleviate crisis caused by falling prices and increased imports of powdered milk from Argentina and Uruguay
The Minister of Agriculture and Livestock, (PSD), defended this Monday (November 3, 2025), that the federal government buy milk from national producers as a way of helping the livestock sector at a time of low prices – caused, among some reasons, by the from Mercosur member countries, such as Argentina and Uruguay.
“Brazil can and should extend a hand to producers. I defend public purchases from Brazilian producers who have their prices flattened so that they can be included, for example, in school lunches”he stated during the opening of the Conference of Ministers of Agriculture of the Americas, at Itamaraty, in Brasília (DF).
The purchase would be made through food acquisition programs – (National School Feeding Program), in (Food Acquisition Program) and the Institutional Purchase Program– as done with the products that were two United States.
DECLINE IN PAYMENTS TO PRODUCERS
The average price per liter paid to producers fell 19% in 12 months, reaching around R$2.40, according to data compiled by (Center for Advanced Studies in Applied Economics). In real terms, the reduction was 4.2% since August.
For researchers at the Center, the fall could turn into a “profound and unfair crisis”marked by negative margins and the risk of producers leaving the activity.
In 2025, there was an increase in the domestic supply of milk, driven by better pasture conditions and investments in productivity. At the same time, Brazil increased imports of dairy products, especially powdered milk from Argentina and Uruguay.
In September alone, imports grew by around 20%, totaling 198 million liters of milk equivalent – almost 80% of this volume in the form of powdered milk. The result was a saturated market and downward pressure on prices paid to producers.
HIGHER RISK FOR SMALL RANCHES
With a liter of milk being traded below production costs, rural producers report difficulties in maintaining activity.
A (Confederation of Agriculture and Livestock of Brazil) states that there is a risk of losing the national production base, especially among small and medium-sized livestock farmers. The Confederation states that excessive imports, at prices considered unfair, constitute a practice of dumpingharming the competitiveness of Brazilian products.
The CNA filed a request with the Ministry of Development, Industry, Commerce and Services to investigate dumping and apply measures antidumping on imported powdered milk. The sector expects some price stabilization in December 2025.
For Fávaro, any measure beyond the acquisition of products by the government and that involves foreign policy needs to be taken with caution so that it does not interfere with Brazil’s commercial relations. “We have to guarantee good commercial relations with South American countries”.
