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The high specialization of dairy production in the United States impressive, but would it be viable in Brazil? We analyze the challenges and crucial differences between the two scenarios.
The dairy farming model in the United States, with its impressive specialization and standardization, often raises the question: would it work in Brazil? There, it is common for one producer to focus exclusively on milking, while another focuses on raising heifers and a third on producing bulky feed, such as silage.
However, the direct application of this system on Brazilian soil encounters a number of obstacles. Despite the theoretical potential, the reality of dairy production in the United States contrasts with the instability, lack of contracts and cultural and productive variations in Brazil, which make this specialization a great challenge.
The American Model: Specialization and Standardization in Dairy Production in the United States
In the United States, dairy production often operates under a regime of high specialization. Each step in the chain can be a distinct activity: one producer focuses solely on milking, another specializes in raising and rearing calves until they become pregnant heifers, and a third may dedicate himself exclusively to producing feed for these animals, such as corn for silage. This division allows each one to optimize their costs and efficiency in their respective area.
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Furthermore, there is a high degree of standardization in livestock used in dairy production in the United States, whether in California, Texas, Florida or Wisconsin. A cow is expected to produce an average of 40 liters and have her first calf around 24 months. Large farms adopt this model, often preferring to buy heifers from specialized third parties, as it is economically more advantageous than raising them internally.
Potential versus reality: would the US dairy farming system work in Brazil?
The idea of replicating the specialization of dairy production in the United States in Brazil is not new and, theoretically, has everything to work out. There are some initiatives and isolated cases in the country, perhaps with greater visibility in small quantities in Paraná. Cooperatives have also made attempts, some successfully, to implement calf rearing systems and the sale of pregnant heifers to their members.
Specialization in silage production, for example, is already a reality on several Brazilian farms that focus on providing quality feed for dairy farmers. However, complete specialization, especially in animal breeding and rearing, still finds very few large-scale success stories in Brazil.
The great Brazilian challenges
The main barrier to a model similar to that of dairy production in the United States in Brazil it is called “Custo Brasil” and instability in trade relations. In the Brazilian dairy sector, the lack of long-term contracts between producers and dairies is a chronic problem. This lack of security affects the entire chain: milk producers have no guarantee of sales to a specific dairy and may change buyers depending on the price offered. Similarly, dairies may stop collecting from small producers, increasing insecurity.
This instability is directly reflected in the viability of specialization in breeding and rearing. The producer who would need to buy heifers has no security on the availability and price of animals, nor on the sale of their own milk. Similarly, those who specialize in raising animals would not have any guarantee of sales. Small and medium-sized producers, who would benefit most from specialization to dilute their high costs of breeding and rearing, are those who have the least security to depend on this system.
Milk vs. Cut
While beef cattle farming in Brazil already has a well-defined segmentation (breeder, rearer, finisher), the dairy sector faces more difficulties. Dairy genetics are more complex to assess visually than that of beef cattle, where weight and conformation are more direct parameters. Buying a heifer raised for milk involves a long-term investment, as the animal needs to remain productive for several lactations (three to six), requiring great confidence in the quality and origin of the animal.
Another limiting factor is the perishability of milk: it needs to be milked daily and delivered frequently (every two days or daily), taking away the producer's flexibility to “hold” the product, as occurs with beef cattle. In addition, the immense variation of breeds, management, regional cultures and microclimates in Brazil makes the standardization seen in the dairy production in the United States, where even personal preferences for certain breeds can override purely economic decisions.
The way forward
Brazil still has a long way to go in the evolution of its milk production. Our national average productivity per cow is low (estimated at less than 2.000 liters per lactation, considering the entire herd), indicating a vast potential for internal improvement before aiming for levels of specialization such as those seen in dairy production in the United States.
For a more specialized system to thrive, it is essential to have a greater structuring of the production chain, with emphasis on contractual security between producers, breeders and industry. While the model of dairy production in the United States may seem distant, it serves as a mirror that reflects both the challenges and opportunities for the continued development of the Brazilian dairy sector.
