Rising milk price for Brazilian tambos [News South America n°14/2020]

Period: September 28 – October 23, 2020 

In Argentina and Uruguay, farm milk production continues to increase during the spring season, remaining at levels well above the production of 2019. The fat and protein components in milk continue to improve.

In most dairy areas there is good availability and quality of feed, except for some areas affected by drought conditions due to La Niña.

In Brazil, milk production is growing, but at slow pace. Unlike Argentina and Uruguay, milk production in Brazil is well below the levels of the previous year, due to the prolonged drought that has affected the main agricultural areas of the country.

Due to the low milk availability, processing industries are paying higher premium prices to the farms.

CLAL.it - Brazil Milk Prices

CLAL.it – Brazil Milk Prices

Low inventories of UHT milk and cheese continue pushing prices up, making negotiations difficult for some processors and buyers.
Brazilian imports of cheese and milk powders remain very active within the Mercosur area.

Argentina+162% Export of SMP September 2020 y-o-y

In September, Argentina has considerably increased its exports of WMP (+119.5%) and SMP (+162.0%) compared to September 2019. The main destinations have been Brazil and Algeria.

In South America, export prices of WMP and SMP have remained stable in recent weeks. The demand is positive, and further growth is expected for the holiday season.

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CLAL.it - Brazil Import of WMP

CLAL.it – Brazil Import of WMP

Source: USDA summarized by the CLAL Team Note: assessments about market trend are expressed inUS$ More informations about dairy market in Argentina, Brazil and Chile are available on CLAL.it

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Posted in Argentina_en, Brazil, News South America, South America