NEW REPORT PUBLISHED!! Ways to increase the economic sustainability of small and medium dairy farmers in Brazil by Carlos Zegwaard, 2021 Brazliian Scholar
13/02/2025
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MEDIA RELEASE
13 February 2025
"The key to a sustainable future for small and medium dairy farmers in Brazil lies in efficiency, value addition, and strong cooperative systems. By learning from successful global models, we can create a more resilient and profitable industry."
- 2021 Nuffield International Scholar, Carlos Zegwaard
Strengthening Brazil's Dairy Industry Through Efficiency and Cooperation
A Brazilian dairy farmer has travelled the world to uncover strategies that can help small and medium-sized dairy producers in Brazil improve their economic sustainability and remain competitive in the global market.
Carlos Zegwaard, a 2021 Nuffield International Scholar from Brazil, supported by Castrolanda, visited the Netherlands, Canada, Chile, Spain, and New Zealand to explore innovative solutions that could be adapted to the unique challenges faced by Brazilian dairy farmers, particularly within the Castrolanda cooperative.
Carlos' research identified four key strategies that could help transform the industry:
Value addition - Processing raw milk into high-value products like cheese and yogurt can boost profitability and reduce reliance on volatile commodity markets.
Cooperative systems - Implementing cooperative models for feed purchase and distribution can create economies of scale, lower costs, and improve feed quality.
Brand strength - Developing a strong cooperative brand can help differentiate high-quality dairy products in the market, increasing consumer loyalty and benefiting producers.
Efficiency focus - Encouraging dairy farmers to adopt more efficient production practices can improve profitability and elevate the professionalism of the industry as a whole.
Carlos was particularly inspired by successful cooperative models in the Netherlands and Canada, where farmers worked together to reduce costs and increase market power. In Chile and Spain, he saw how small-scale farmers leveraged branding and specialty dairy products to create profitable businesses. New Zealand provided insights into how efficiency and production systems could be optimized for greater resilience.
"The biggest takeaway from my research is that small and medium dairy farmers in Brazil don't have to struggle alone. Through cooperation, efficiency, and innovation, they can build more resilient businesses that are less vulnerable to price fluctuations and rising input costs," Carlos says.
His findings offer practical recommendations for the Castrolanda cooperative, policymakers, and individual dairy farmers seeking to enhance economic sustainability in the face of growing challenges.
Carlos' full report is now available on the Nuffield International website.
