Strong demand pushes Brazil wheat milling to record
Brazil’s wheat milling industry processed a record 13.27 million tonnes in 2025, driven by rising demand for wheat products and diversified offerings. Imports supplied 49.3% of wheat needs, mainly from Argentina. Mills also faced higher costs, quality issues in Argentine wheat, and potential consumer price increases.
Brazil’s wheat milling industry processed a record volume of wheat last year, reaching 13.27 million tonnes, up 0.6% from 2024. The data was released Monday (25) by Abitrigo, the trade association representing the country’s milling companies. Strong consumer demand and greater product diversification in the industry drove the record milling volume.According to Daniel Kümmel, chairman of Abitrigo’s board, milling growth has followed a consistent upward trend in recent years.
“We have been on a growth curve since 2021. Total growth over the past five years has reached 4.5%,” he said.
He noted that the increase in milling has outpaced population growth, signaling higher consumption of wheat-based products in Brazil.
“Brazilian consumers are clearly consuming more wheat products,” he said.
The shift is also reflected in the product mix. According to Abitrigo’s survey, while bakery products still account for about 30% of Brazil’s wheat milling output, demand is rising for premixes, pasta, biscuits, frozen bread, and premium products such as specialty and whole-wheat flours.
“Specialty and artisanal breads are also growing. The diversity of products available today is much greater,” Kümmel said.
Of the wheat processed in 2025, nearly half (49.3%) was imported, mainly from Argentina, as well as Paraguay and Uruguay, according to Abitrigo.
The association’s survey also showed how dependent different regions of Brazil are on imported wheat. In the Northeast, imports account for 95% of demand. In São Paulo state, the figure stands at 72%, while in the Central-West region, together with Minas Gerais, Rio de Janeiro, and Espírito Santo, imports represent 64%.
Logistics directly influence this dynamic, according to Kümmel. “Mills in the North and Northeast already have an established structure to receive imported wheat. Structurally, it is much more viable,” he said.
The executive also pointed to a decline in the quality of Argentine wheat in the latest harvest. “It was the year with the greatest impact on Argentine grain quality. There was a drop in protein and gluten levels,” he said.
The situation led Brazilian mills to use domestic wheat to improve the quality of blends, according to Kümmel. “Brazilian wheat was used to improve Argentine wheat, which is unprecedented,” he said.
Even as the sector celebrates strong demand, the industry remains concerned about rising costs throughout the production chain, especially given that a large share of processed wheat comes from abroad.
Kümmel said the war in Iran has increased freight and packaging costs in particular. “All these variables create major concerns regarding supply flows and final product prices,” he said.
According to him, part of the increase may be passed on to consumers, affecting bread, pasta and biscuits. “If we absorb these costs, technically there will be a transfer of costs to the market,” he said.
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Source : Datamar News
