Brazil: farmers ask for a regulation of WMP imports [News South America n°1/2016]

Period: October 17 – 28, 2016


  • Milk production: near to the peak of the spring flush.
  • Weather situation: although rainfalls are present in the main dairy basins, milk yields have been marginally affected.
  • Milk producers: pasture conditions should be good in Cordoba, Santa Fe and Buenos Aires.
  • Overall market situation: milk surplus is enough to process dry whole milk. Pulls from “dulce de leche” (milk caramel) makers are strong. Bottled milk sales to grocery stores, food service and educational institutions are solid. Demand for UHT milk is active.


  • Milk production: is seasonally higher, but below the levels from last year.
  • Milk producers: the lack of water is degrading pasture quality. Consequently, several farmers are feeding cows with supplementary grains, lowering their revenues margins. Milk prices paid to milk producers in September were up 9.2% from last month and 16.1% above the previous year.
  • Overall market situation: fluid milk demand from several retail channels are fair to good.


  • Milk production: is improving, compared to previous weeks.
  • Weather situation: the rainy season is starting in key dairy states. Thus, many dairy operators are anticipating a quality improvement on pasture and crops in the short term.
  • Overall market situation: fluid milk interest from retailers and restaurants is good. Processors are demanding higher volumes of milk in the spot market. Spot sales activity for UHT milk has been light.
  • Argentina: -11.38% (Jan-Aug 2016 year-over-year)
  • Uruguay: -12.67% (Jan-Sep 2016 y-o-y)
  • Brazil: -6.37% (Jan-Jun 2016 y-o-y)
  • Chile: -2.14% (Jan-Aug 2016 y-o-y)

WMP prices for 26% butterfat: 2,750 – 3,100 U.S. $/MT, F.O.B. port.
The top price of the range was adjusted higher in order to reflect several export transactions from Uruguay to Brazil. According to industry participants, the WMP market is balanced. WMP demand from buyers/end users is strong. Milk producers in Brazil are asking the government to regulate the volume of WMP imports coming from Uruguay. - Brazil: main suppliers of WMP – Brazil: main suppliers of WMP

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, Chile, News South America, Uruguay_en
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  1. […] Submergés par la poudre de lait uruguayenne, les producteurs de lait au Brésil demandent au gouvernement de réglementer le volume des importations de WMP en provenance d'Uruguay.  […]

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