Argentina: WMP Export on the rise [News South America n°9/2020]

Period: April 27 – May 22, 2020

Argentina+6.46% milk production March 2020 y-o-y

In Argentina and Uruguay, farm Milk production is steadily improving, with volumes that are more than enough to meet most manufacturing needs. The cream market remains firm, but butterfat supplies are slowly becoming more accessible in the market.

The high price of corn and soybeans, the low value of local currencies and steady farmgate prices, have not been favourable for small dairy producers without economies of scale.

In Brazil, farm Milk production is down, with volumes that are less than enough to meet processors’ demand. Despite the increase in cases of Covid-19, the operations for farm milk collection, milk manufacturing, and dairy product distribution have remained relatively normal.

From sellers’ perspectives, the market trend of various dairy products, such as UHT Milk and Milk, Cheese and Milk powder, is positive, recording low levels of stock and increase in prices. Particularly active in recent weeks the sales of yogurt.

Price WMP +4.46% in South America May 22, 2020

In Argentina, export prices of SMP and WMP are rising, driven by an increase in exports mainly to Algeria.

SMP demand has strengthened in recent weeks, while supply is limited, as most of the drying time is spent in manufacturing WMP, and inventories seem to be already committed.

As for the WMP, there is optimism among operators in the sector, with buyers who are confident in buying the product, despite the pressures of the Covid-19 on the market. Production of WMP is limited, and stocks are falling.

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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, Uruguay_en