Argentina encourages consumption: 0% VAT on liquid milk and yogurt [News Sud America n°13/2019]

Farm milk production continues going up in South America, coming close to the peak of the year. Milkfat and protein components in the milk are steadily improving.

The milk offer in Brazil is not enough to satisfy the demand

Although in Brazil the milk production is higher compared to the previous couple of years, it remains not enough to satisfy the demand from the food industry, creating vivacity in imports of cheese and milk powder.

In Argentina, the milk production remains more than adequate to satisfy the needs of the food processing industry. The government announced the elimination of the VAT on liquid milk and yogurt, in order to increase the retail consumption during the Q4 of 2019. The change of the presidency generates uncertainty in the sector.

The prices of SMP keep growing, reflecting a lower offer. In fact, several plants are near full capacity, preferring the WMP transformation.

The prices of WMP are in light decrease, showing a weaker market. The demand from the food processing industry is stable but with an expected growth ahead of the upcoming year-end holidays.

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on > - Import of WMP from Brazil – Import of WMP from Brazil - Import of SMP from Brazil – Import of SMP from Brazil

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

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The team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.

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