Argentina WMP export jumps [News South America n°16/2020]

Period: November 9 – December 4, 2020

Milk production in South America is decreasing after reaching the peak of the season in October. Due to the high temperatures of early summer, the heat stress in dairy cows is increasing.

The rainfall brought by La Niña is slightly improving the quality of forage. At the moment, the planting of Soybeans and Corn has been delayed due to a very dry or very rainy weather across the main agricultural zones.

Argentina+5.7% milk deliveries
Jan-Oct 2020 y-o-y

In the Argentine and Uruguayan dairy industries there are sufficient volumes of milk to meet the needs of the processing companies. October data on Milk deliveries show a positive trend for both countries, +5.7% for Argentina and +4.9% for Uruguay (compared to October 2019).

In Brazil, Milk production is steady and the volumes of milk available are not able to meet the needs of the local dairy industry. Therefore, the prices of milk at the stable remain high compared to the rest of the continent.

In South America, most of the available milk is destined for the production of Fresh Milk, UHT and Cheese. These products are recording an increase in retail consumption, thanks to the approach of the Christmas holidays. The sector continues struggling with the Covid-19 situation.

Export prices of SMP increased. In the last two weeks, despite the strong demand, drying schedules for skim milk have been reduced since most processors focus on WMP production.

Export prices of WMP increased. Production is decreasing as there is less milk available for drying. WMP inventories are not able to meet the demands of the international market given the use in the South American dairy industry for the end-of-year holidays.

Exports of Cheese and Milk Powders of Argentina and Uruguay remain active. In the period January – October 2020, the export of WMP of Argentina and Uruguay increased respectively by 89.4% and 9.1% compared to the same period of 2019.

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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

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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