Exchange rate fluctuations put pressure on Brazilian milling sector

The significant increase in the dollar exchange rate continues to have a direct impact on the national milling industry. The CEO of the Brazilian Wheat Industry Association (Abitrigo), Ambassador Rubens Barbosa (pictured above), explains that this upward movement in the exchange rate has had and will continue to have an impact on the price of wheat and flour.

Even with a possible reduction in the dollar exchange rate, exports from Rio Grande do Sul (around 1,5 million tons) have already been carried out, and there will be a need to import wheat through Paraná.

Brazil, which still depends on wheat imports to supplement its domestic production, faced a challenging scenario in 2024, marked by volatility in international prices, adverse weather conditions and a significant reduction in domestic production. These factors, combined with the appreciation of the dollar, are already being reflected in mill costs, increasing pressure on the entire production chain and indicating that an increase in wheat flour prices will be inevitable.