Brazil Proposes Minimum Milk Price for Farmers

Brazil is considering a new policy to strengthen its dairy sector through Bill PL 913/2026, which proposes a minimum farmgate milk price of R$2.50 per litre for dairy producers. Introduced by Deputy Cobalchini (MDB-SC), the bill aims to provide greater income stability for farmers by making the average production cost per litre the primary benchmark for setting the minimum price under the Ministry of Agriculture and Livestock's price guarantee policy.

The proposal also requires the ministry to consult technical bodies and industry representatives at least 30 days before determining the annual minimum price. According to data from Embrapa's Milk Intelligence Center, the average net price paid to producers in 2025 was R$2.51 per litre, while real milk prices have fluctuated between R$2.20 per litre in 2017 and R$2.76 per litre in 2022, highlighting the volatility faced by dairy farmers.

The bill is currently under review by the Chamber of Deputies' Agriculture Committee and the Constitution and Justice Committee. If approved by both the Chamber of Deputies and the Senate, the legislation is expected to provide greater economic security for producers, reduce price volatility and improve long-term stability across Brazil's dairy value chain. (Portal da Câmara dos Deputados)

Source: Dairynews7x7 13 July, 2026 Read full article here

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