Brazil hits record milk production amid declining cattle herd

Brazil reached a record milk production of 36.7 billion liters in 2025, marking the third consecutive year of growth. According to data from the Brazilian Institute of Geography and Statistics (IBGE), this increase occurred despite a 2.7% decline in the number of milking cows, which fell to 14.7 million—the lowest level since 1979. This trend highlights a significant rise in productivity, which grew by 5.6% to an average of 2,498.7 liters per cow.

The increase in productivity is attributed to favorable climatic conditions, investments in genetic improvement, and a reorganization of the productive base as smaller or less specialized producers exit the market in favor of larger, more technologically advanced operations. The South region led the country in productivity, averaging 4,300 liters per cow.

Simultaneously, Brazil's total cattle herd declined by 1.7% in 2025 to 234.3 million head, marking the second consecutive annual decrease. This shift follows a period of expansion that ended in 2023. Despite the smaller herd, the beef export sector saw significant growth, with shipments rising 20.7% to 3.853 million tons and revenue increasing nearly 40% to US$ 18.365 billion. The total value of Brazilian livestock production reached a record R$ 141.2 billion, driven largely by the dairy sector.