The Rio Grande do Sul milk industry showed a decline of almost 4% in sales in the 12-month period, from March 2023 to February 2024 compared to March 2022 to February 2023. Data from the State Revenue indicate that the combined volume dropped to R$16 .61 billion. Domestic sales suffered the most, falling by more than R$350 million.
In the case of powdered milk, more than 55% of what was demanded within Rio Grande do Sul came from imports. “With the entry into force of the Government decree, which limits the use of tax benefits by those who purchase the input abroad, the Dairy Industry Union of RS (Sindilat/RS) believes that reprocessing companies (chocolates, ice cream and biscuits ) resume consuming from the industry in Rio Grande do Sul, also strengthening producers”, highlighted Alexandre dos Santos, second vice-president of Sindilat/RS.
The investigation indicates in the fourth survey that the purchase of packaging continues to lead when it comes to the entry of inputs. “This reflects the importance for the dairy sector of maintaining tax equality incentives, such as the FAF, without which it will be impossible to maintain competitiveness in the market, since more than 60% of processed milk is consumed outside RS, while several inputs need to be purchased from abroad, as they are not produced here”, adds Darlan Palharini, executive secretary of Sindilat/RS, when reaffirming the option to review the ICMS rate and remove existing tax comparisons with other producing states. The data is in the 18th Edition of RS360 Magazine.