Brazil: high farm-gate milk price due to the competition for milk [News Sud America n°12/2019]

Period: September 30 – October 11, 2019

Milk production in South America grows as the spring approaches.

In Brazil, rainfalls are spurring pasture quality. While farm milk supply is improving seasonally, farm-gate prices remain relatively high mainly due to the competition for milk among dairy processors.

In Argentina and Uruguay, the climate has been mostly dry. However, the quality and quantity of fodder are in line with the feeding needs of dairy herds.

In South America, average export prices for SMP have slightly decreased and the market undertone is currently unsteady. This situation may change in the upcoming weeks as this niche market is very volatile.

Unlike the recent downward global trend in WMP prices, South American export prices are firmer, as WMP supply is below the immediate need from Buyers. The WMP demand from Brazil is strong.

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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 Brazil, News South America, South America