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Milk loses competitiveness, and imports climb

Brazilian milk is losing its competitiveness in export markets. Last year, imports totaled US$ 600 million, 88% more than in 2010. Of this amount, US$ 395 million was spent on milk and dairy products and US$ 205 million on cheeses.

In the opposite direction, exports have lost ground. After earning US$ 116 million in 2010, exporters were able to earn only US$ 89 million last year. A researcher at the Center for Advanced Studies in Applied Economics (Cepea), Aline Barrozo Ferro, has attributed this loss of competitiveness to the exchange rate.

The strong Brazilian currency made Brazilian milk expensive on the markets the country had won over in previous years, when it had a trade surplus. At the same time, the weaker dollar favored imports into Brazil, particularly from Mercosur countries, according to the researcher.

Information provided by Folha de S.Paulo



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