Brazil aims to be world leading dairy exporter

The prospect of a trade deficit in 2009 does not stop Brazilian milk exporters from targeting to be the world's top five dairy suppliers again next year.

The Brazilian dairy industry exported US$540 million in powdered milk last year, but the industry has registered a deficit of US$86 million up to October.

This is a setback as the industry had been in surplus since 2004, said Rodrigo Alvim Sant'Anna, chairman of the Brazilian Confederation for Agriculture and Livestock (CAN).

But the trade balance is expected to become positive in December, he said. This year, exports exceeded imports only in February.

Sant'Anna said the imbalance was caused by low supply in 2008, when there was a remarkable growth right before the financial crisis.

The industry lacked milk when a tonne was sold at US$5,000 at the time. After that, there was a time of market adjustment and the industry expects to get back on track, he said.