Ways to increase the economic sustainability of small and medium dairy farmers in Brazil

This study examines the challenges faced by small and medium-sized dairy producers in Brazil, particularly within the Castrolanda cooperative. Despite the country's significant contributions to global milk production, these producers are facing declining numbers due to various factors. The research is based on international case studies, focusing on countries like the Netherlands, Canada, Chile, Spain, and New Zealand, to identify potential solutions and best practices.

The study explores several strategies to support small-scale dairy farmers, including:

• Value addition: Transforming raw milk into value-added products like cheese, yogurt or any other creative products made from milk, can increase profitability and reduce reliance on commodity markets.
• Cooperative systems: Implementing cooperative models for feed purchase and distribution can lead to economies of scale and improved feed quality.
• Strengthening the cooperative brand: Building a strong brand identity can make the cooperative’s high quality products stand out, growing it’s market share and consumer loyalty, benefiting individual producers.
• Focus on efficiency: Encouraging efficient production practices, can change the producers mindset, making the Brazilian dairy industry more professional and efficient as a whole.

By comparing these international case studies to the Brazilian context, the research identifies opportunities for the Castrolanda cooperative to support its members and ensure the long-term sustainability of small-scale dairy farming in the region, offering practical recommendations for policymakers, cooperatives, and individual producers.