Brazil milk production hits record high amid productivity gains

Brazil's milk production reached a record 36.7 billion liters in 2025, marking a 2.7% increase from the previous year. According to IBGE data, this growth occurred despite a 2.7% decline in the number of milk 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, driven by favorable weather, genetic improvements, and industry reorganization.

In the state of Rio Grande do Sul, milk production rose by approximately 2.38% in 2025. However, the Association of Small and Medium Dairy Industries (Apil) reports that imports from Argentina and Uruguay, which account for about 8% of the market, are putting pressure on local businesses. Small and medium-sized industries face difficulties competing with cheaper imported products and the ability of larger companies to import raw materials like milk powder, whereas smaller dairies rely heavily on local production.