Wednesday, 25 January 2012

Brazilian milk quality: gradual improvements, but positive outlook

Milk quality - proposed quality standards by MinAg in Brazil:



100,000 UFC/ml corresponds to EU quality standards. 4 years will be needed.
Once the quality issue is solved I'd expect more investments, better farmgate prices and some gradual return to export markets, while WMP/SMP imports from Argentina/UY should be flat or decline.
Brazil has a large dairy cow herd - around 16 mio heads - but the industry has been plagued by low quality, low productivity, logistical issues and a host of structural problems that have prevented the sector from growing.

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