The Tragedy of Milk Prices
Dairy farmers, who produced 8.4 billion liters of milk in 2025, face a tragedy due to the government-set price increase, which does not even cover their costs.
TL;DR
- Dairy farmers produced 8.4 billion liters of milk in 2025 but face a tragedy due to insufficient government-set prices.
- The sector relies on around 400,000 farmers, with over 230,000 operating small family micro-enterprises (10 animals or fewer).
- A few large companies dominate the market (oligopsony), controlling prices and purchasing only 41% of the total milk production.
- The industry imports milk and derivatives, equivalent to 18% of its purchases, while domestic farmers struggle.
- Government-mandated price increases for milk are minimal (1.3%) despite rising production costs (23% increase in minimum wage).
- This situation forces small farmers to choose between feeding their families and their animals.
- Long-standing issues in the dairy chain have not been resolved, leading to an irreparable rural tragedy.