"Right now, the [milk production] sector is experiencing a period of stability and also some predictability, even in a context of European and global turmoil with wars, taxes, and inflation. This stability has provided some profitability for farmers," Agros president Idalino Leão told Lusa.

Despite this stability, Portugal saw a slight increase in dairy imports in 2024, according to the National Institute of Statistics, something the leader of the country's largest dairy cooperative believes can be reversed.

"Portugal has a surplus of liquid milk, but it still has a deficit in dairy products. There are some subcategories, fat and protein, that we do not yet produce, and to meet our needs, we resort to imports. Not for lack of production capacity, but because some major international brands are able to place them on our market at lower prices," he explained.

The director added that the strategy must involve strengthening the quality of domestic milk, focusing on the value of solid products.

"This is a path the sector is also following, pedagogically explaining the importance of producing increasingly more solid products, because these are what will allow us, in the industrial phase, to reduce this deficit," he emphasized.

In this regard, technological modernization was another point highlighted by the Agros leader, who noted that digitalization, robotics, and even the use of artificial intelligence is already a reality fully integrated into farms.

"When I hear about artificial intelligence, it seems new, but for us, it's already a thing of the past. Animal science and precision agriculture are something we've been doing for many years. Today, the sector is completely robotic," he emphasized.

On the European front, Idalino Leão expressed concern about potential cuts in support from the Common Agricultural Policy (CAP), which could occur as early as 2027.

"Our agriculture still needs investment. We can't give up this important share through direct support from EU funds. We have to reduce our agri-food deficit, and in this climate of geopolitical uncertainty, the issue of food is also a matter of sovereignty and defence," he stated.

The Agros leader was also asked about the negative impacts or opportunities that the tariffs imposed by the United States of America could have on the sector at the national level, despite the fact that milk exports to the American market are still marginal.

"I believe the problem will be more related to animal feed, the import of soybeans and corn, of which we are in deficit. If this happens, it will obviously force an increase in farmers' production costs, which will impact the entire agrifood chain," he shared.