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August 25, 2016

Maryland Gains Dairy Market Share in Brazil

 |  By: Anna-Lisa Laca

The strength of the U.S. dollar left American milk products outpriced for much of 2016. But as prices continue to soften exports are increasing, and Brazil is an excellent example. According to the USDA’s Foreign Agriculture Service in Brazil, the U.S. has exported more than US$3 million of milk powder in 2016. The service says this is in response to a domestic shortfall in the country. “Dairy imports rose by 70% in the January-July 2016 period due to a production shortfall in Brazil,” officials say. “As a result of the shortage of milk powder in the market, Brazil is searching for other supplies and has imported from the United States despite an import tariff of 33%.”

While Uruguay and Argentina lead as Brazil’s dairy import suppliers, the U.S. and other nontraditional milk suppliers have gained market share over the past year. FAS notified U.S. milk powder suppliers of the market opportunity and also helped register their labels in the Brazilian market.

According to FAS, Maryland is the state taking the most advantage of the opportunity exporting US$ 3.1 million dollars so far in 2016, an increase of 172% compared to the same timeframe last year.

 

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