Brazil increases dairy imports to meet domestic demand [News South America January 2021]

argentina climate

Climate and Crops

In South America, and especially in Argentina, the drought present in the last months of 2020 has reduced the forecast for corn and soybean yields.

In January, however, rain showers improved the conditions of the crops, but caused sanitary problems for some dairy farms. In addition, the high summer temperatures are influencing milk production according to seasonality.

Milk Deliveries

Chile+6.3% Milk deliveries

Jan – Nov 2020 y-o-y

Milk deliveries in Argentina, Chile and Uruguay recorded positive variations compared to the previous year.
Also in Brazil, in the period January – September Milk deliveries increased, by + 1.2% compared to the same period of 2019. However, in the Brazilian dairy industry the volumes of milk are not sufficient to satisfy the needs of processing companies. - Milk Deliveries South America – Milk Deliveries South America

Dairy Product Market

Bottled and UHT milk production remain the priorities under this COVID-19 conjuncture. The butterfat market is firming thanks also to the increase in demand from ice cream and frozen desserts manufacturers.

Brazil WMP Import+236% December 2020

The import of Milk Powders and Cheese from Brazil increased strongly, the main supplier countries are Argentina and Uruguay.
SMP and WMP prices rose, in line with the bullish trends of the GDT auction. The demand for these products is high and the supply is unable to cover it entirely, this is leading to a decrease in stocks. - Brazil Import of WMP – Brazil Import of WMP

Source: CLAL processing on USDA, IHS and local sources

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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