In the coming years, the entities that are part of the Southern Brazilian Dairy Alliance (ALSB) will implement the Dairy Export Incentive Plan, presented on Tuesday (03), in Curitiba. The proposal seeks to structure the export capacity of the Southern region, expand international insertion and reduce the vulnerability of the chain to fluctuations in the domestic market. The Southern Brazilian Dairy Alliance is constituted as a public-private forum, with the objective of harmonizing the productive, industrial and commercial environment of the states in the region, seeking to consolidate a supplier bloc of milk and dairy products with similar quality standards for the domestic and foreign markets.<\/p>\n
Currently, dairy exports represent only 0.34% of national production, while 8% of the milk consumed in the country is imported from Mercosur countries, according to data from the Brazilian Institute of Geography and Statistics (IBGE). This scenario highlights the dependence on the domestic market and reinforces the need for diversification of destinations as a way to provide greater stability to production, especially during times of imbalance between supply and demand, when competition for space in the domestic market puts pressure on prices and margins.<\/p>\n
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<\/p>\nPresident of the FAEP System, \u00c1gide Eduardo Meneguette: \u201cWithin the scope of the FAEP System, in collaboration with entities in the sector, we intend to boost exports from the dairy sector.\u201d<\/p>\n<\/div>\n
\u201cWithin the scope of the Faep System, in collaboration with sector entities, we intend to boost dairy sector exports. We will work together, in a coordinated and strategic manner, to increase this flow,\u201d says the president of the Faep System, \u00c1gide Eduardo Meneguette.<\/p>\n
The objective is to structure, expand, and consolidate the export capacity of the dairy chain in the Southern region of Brazil by 2030. The proposal includes the formation of production hubs, improvements in competitiveness, industrial investments, and market access initiatives, with the goal of increasing export volume and reducing milk price volatility, as well as vulnerability to imports.<\/p>\n
According to ALSB consultant Airton Spies, making the Southern region an exporter is a strategy that benefits the entire country. Currently, the three states account for 431% of Brazilian milk production.<\/p>\n
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<\/p>\nAccording to ALSB consultant Airton Spies (on the left), making the Southern region an exporter is a strategy that benefits the entire country: \u201cIf the South becomes an exporter, it relieves pressure on the domestic market. When there are exports, space opens up.\u201d<\/p>\n<\/div>\n
\u201cIf the South becomes an exporter, it relieves pressure on the domestic market. When there are exports, space opens up. The country itself should be interested in the Dairy Alliance's export strategy, because it is important for Brazil,\u201d says Spies. \u201cWe have identified ten bottlenecks that explain why we are not competitive. If we don't address these points, we will remain limited to the domestic market,\u201d he adds.<\/p>\n
Among the main bottlenecks are the limited scale of the farms, low agronomic and zootechnical efficiency, milk quality and industrial solids yield, as well as price volatility and poor coordination between the links in the chain.<\/p>\n
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<\/p>\nSecretary of Agriculture and Supply of Paran\u00e1, M\u00e1rcio Nunes: "We are ready to create the conditions and support the ventures that allow this progress."<\/p>\n<\/div>\n
Another set of bottlenecks involves structural factors, such as sanitation problems \u2014 including brucellosis and tuberculosis \u2014, idle industrial capacity, and deficient infrastructure, especially in energy, connectivity, and rural roads, which directly impact logistics costs and competitiveness.<\/p>\n
According to the Secretary of Agriculture and Supply of Paran\u00e1, M\u00e1rcio Nunes, the state is prepared to enable the investments necessary for the sector's advancement. "We are ready to create the conditions and support the ventures that allow this progress," he affirms. "The government is investing heavily in rural infrastructure, especially in road repairs, because we know that efficient logistics are fundamental to reducing costs and increasing the producer's competitiveness," he adds.<\/p>\n
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<\/p>\nThe Dairy Export Incentive Plan was presented by the Southern Brazilian Dairy Alliance (ALSB) in Curitiba.<\/p>\n<\/div>\n
The need to align production costs with international standards is also a challenge. According to Spies, competitiveness is essential for the sector to advance in the foreign market and reduce its vulnerability. "When Brazilian milk is aligned with international prices, we will be competitive, break through the ceiling of the domestic market, and start having two markets," he explains.<\/p>\n
Among the mechanisms foreseen in the plan are the formalization of the production chain in a vertical integration model, credit lines with differentiated interest rates, terms and grace periods, safeguards for equalizing amortizations in times of misalignment between domestic and international prices, and tax incentives for the implementation of projects, including tax exemptions on equipment destined for industries and producers included in the export strategy.<\/p>\n<\/div>\n