A milk production in Rio Grande do Sul is still far from reaching its full production potential. Despite the concentration of the activity on larger-scale farms, many of the state's dairy farms operate below the levels they could achieve, pointing to opportunities for growththrough improvements in management, herd feeding, and production system efficiency.
The diagnosis was presented during the Milk Summit Mercosul 2026, held on 14 and 15 October, in Ijuí (RS). On the occasion, Transpondo consultant and director, Wagner Beskow, highlighted that the northern half of Rio Grande do Sul has an estimated production capacity of 33 thousand liters of milk per hectare per year in conventional systems and 50 thousand liters per hectare per year in irrigated areas.
According to the expert, these figures are more than twice the average productivity observed in the region, showing there is room to increase production without relying exclusively on expanding the area used.
Milk production in RS is undergoing consolidation
Productivity growth is taking place amid a structural transformation of dairy farming in Rio Grande do Sul. According to data from Emater/RS, 55,2 thousand producers left the activity over the past decade. With fewer farms engaged in commercial production, the sector has come to concentrate larger volumes in production units that remain active. For Beskow, this change is likely to favor the consolidation of larger farms.
The consultant believes that production scale and operational efficiency have gained importance in light of changes in the dairy chain. In this context, farms producing more than 500 liters per day are likely to be better positioned to make milk collection logistics viable for dairy processors. Beskow also recommends simpler, leaner structures, with decisions that take the integrated operation of the farm into account. Organizing routines for both animals and people is identified as a fundamental part of production efficiency.
Labor shortages and work strain accelerate producers’ departure
However, remaining in dairy farming depends not only on productivity or herd size. Labor availability, working conditions, and family succession also influence the continuity of farms.
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A survey by Emater/RS found that 66,4% of the families consulted identified the arduous nature of the work as a factor related to leaving the activity. A lack of family labor was mentioned by 61,3%, while 37,8% cited the children's lack of interest.
The state technical assistant at Emater/RS, Jaime Ries, believes that abandoning commercial milk production should be understood as a multifactorial process. Factors involved include the economic conditions of the supply chain, work organization, labor availability, generational dynamics, and income-generating alternatives. The data reinforce that the sustainability of dairy farming requires solutions that reduce the burden on families and make the activity more attractive to younger generations.
Milk quality can increase profitability
In addition to increasing production per hectare, experts highlight the need to improve the composition of the milk and increase the financial return per liter produced. One of the relevant indicators is total solids content, especially fat and protein, which may influence bonuses paid to the producer according to the criteria adopted by dairy processors.
According to the data presented by Wagner Beskow, the combined fat content and protein content of milk in Rio Grande do Sul ranges from 6% to 7,5%, while the average in New Zealand reaches 9,17%. The difference is also reflected in the production costs reported during the event. The estimated cost per kilogram in Rio Grande do Sul is US$ 5,82, compared with US$ 3,33 in New Zealand.
For Beskow, the state is well positioned to make progress in this scenario, leveraging advantages such as forage production efficiency per hectare. The challenge is to turn this potential into greater quality, productivity, and profitability through rigorous cost control.
Forage and management help address international competition
In the assessment of Glauco Carvalho, a researcher at Embrapa Dairy Cattle, forage availability and family involvement in the activity are among the distinctive features of production in Rio Grande do Sul in the face of competition from countries such as Argentina and Uruguay. These characteristics can contribute to competitiveness, but they need to be accompanied by improvements in farm organization and production system efficiency.
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Carvalho also notes a trend toward consolidation and growth of farms, partly to optimize collection logistics and improve milk quality. Concentrating production in larger units may reduce the need to stop at a large number of small farms. On the other hand, the predominance of small and medium-sized rural establishments in the state may limit the pace of this expansion, requiring strategies suited to the regional landholding structure.
Milk Summit Mercosul confirms edition in 2027
In addition to discussing productivity, costs, and competitiveness, Milk Summit Mercosul 2026 brought together representatives of the dairy industry to discuss the sector’s challenges and prospects. The event had more than 750 participants over the days 14 and 15 of October, as well as 27 speakers and panelists, four discussion panels, and 11 startups at the Dairy Innovation Arena.
At the end of the program, Darlan Palharini, the event coordinator and executive secretary of the Dairy and By-Products Industry Union of the State of Rio Grande do Sul (Sindilat), confirmed that a new edition would be held in 2027. The initiative seeks to maintain a space for dialogue among producers, industry, researchers, technology companies, and public-sector representatives about the paths for the dairy chain development.
The Milk Summit Mercosul 2026 was held by Sindilat, the Rio Grande do Sul Secretariat of Agriculture, Livestock, Sustainable Production and Irrigation (Seapi), the Ijuí City Hall, Emater/RS-Ascar, Sebrae/RS, Suport D’ Leite, and Impulsa Ijuí. The event was supported by companies and institutions connected to the milk production chain, including cooperatives, dairy companies, technology suppliers, and organizations in the agricultural sector.
Efficiency will be decisive for the future of dairy in Rio Grande do Sul
The situation presented shows that the increase in milk production no Rio Grande do Sul depends on a combination of factors: harnessing production potential per hectare, controlling costs, improving quality, organizing the workforce, and planning operational scale.
Although the consolidation of farms can contribute to logistical efficiency, the continued presence of producers also requires attention to working conditions and family succession. The ability to turn production potential into profitability will be decisive for the competitiveness of Rio Grande do Sul’s dairy sector against other markets and for the continuation of the activity in the different regions of the state.
The information is from the Agribusiness Portal.
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