Market Report Q2 2021 – Brazil

Foodcom Experts
8 min reading
Market Report Q2 2021 – Brazil
Read our report on the dairy and grains market in Brazil. Take a look at the main imported dairy goods, increased milk orders, and projected milk output. Discover also the recent export numbers of key grains and estimated production for the upcoming season.

Dairy market overview

In 2020, milk production in Brazil reached 11.01 million tonnes and the projected output for 2021 is at 11.1 million tonnes. The production of other main dairy products is estimated to increase in volume, the highest for SMP with a projected year-to-year growth of 4% to a total of 155,000 tonnes by the end of 2021.

Brazil’s imports of dairy products

In 2020, Brazil imported 19.6% more dairy products than the year before. The most purchased commodities were WMP, cheese, SMP, whey, FFMP, and pharmaceutical lactose. Among all dairy products, Brazil is importing WMP in the largest volumes. In the first half of 2020, the country purchased 34,600 tonnes of the product – an increase of 27.5% from the same period last year. The highest growth in imports was seen for butter – Brazil ordered 3,800 tonnes of the product in the first six months this year, constituting the growth of 196.8% in purchases. Orders for cheese were up by 24.6%, while purchases of SMP increased by 49.6%. Brazil purchased also 11,100 tonnes of whey powder – down by 6.1% from the same period last year. Between January and May 2021, the country ordered 815 tonnes of whey powders from EU partners of which 810 tonnes came from France and the remaining 5 tonnes from Ireland.

Brazil’s exports of dairy products

In terms of exports, Brazil sold 7,100 tonnes of milk and cream in the first seven months of 2021 compared to 5,300 tonnes in the same period a year before. Exports of cheese and infant milk formula were also higher by 16.1% and 22.9% respectively. The most significant increase in dairy deliveries was seen for WMP with growth of 366.7% to a total of 5,300 tonnes of the product delivered between January and July 2021.

Grains market overview

For the marketing season 2021/2022, Brazilian output of corn is expected at 118 million metric tonnes, of which 43 million are dedicated for export. However, summer drought may hinder the corn yield numbers. In the second week of August, the average daily exports of Brazilian corn reached 213,320 tonnes, up from 143,650 tonnes in the previous week. Nevertheless, improved numbers are still around 28.25% down from the same month in 2020.

Wheat domestic yield in Brazil is expected at 7.7 million metric tonnes, up from 6.25 million the year before. Higher production numbers for wheat result in decreased import demand expected at 6.5 million metric tonnes for 2021/2022.


At the same time, the country’s production of soybean is projected to reach 144 million metric tonnes, up from 137 million in the previous season. If the number is confirmed, Brazil will have produced over 37% of the world’s soybean output. Between January and July 2021, total exports of soybean meal amounted to 10.15 million tonnes, decreasing by 0.5% from the same period last year. In July, total shipments of the product reached 1.987 million tonnes – the highest monthly export in 17 years. Among July soybean exports from Brazil, Indonesia purchased 15.2%, Thailand ordered 13.5%, and Vietnam was responsible for 9.9%. The EU buyers included Spain, Germany, the Netherlands, and France.
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