Period: October 26 – November 6, 2020
Milk production has generally stagnated after peaking over the past couple of weeks in the main dairy basins of South America.
Scattered showers have relieved dry conditions in the south region of the continent, boosting the forage quality in several dairy farms.
At the industrial level, milk and cream volumes are more than adequate to meet the demand in most countries of the Southern Cone region, Brazil being the exception.
Argentina+7.8% milk deliveries Jan – Sep 2020
In Argentina, Uruguay and Chile, milk deliveries for the period January – September are positive, recording variations between +5% and +8%.
The increase in production is driven by the favourable weather conditions recorded during the season. However, at the end of the year, low rains and higher temperatures are expected to have a negative impact on milk production.
In Brazil, due to a prolonged period of drought, milk production levels are well below the previous year. At the moment, however, Brazilian milk production is growing due to improved climatic conditions.
In South America, fresh milk, cheese and yogurt productions are active, supported by a strong retail demand due to the Christmas holidays. The Ho.Re.Ca. sector continues struggling with the COVID-19 situation.
Brazilian imports of Cheese and Milk Powders continue to grow, recording an increase of +234% in October for WMP, +148% for SMP and +51% for Cheese (compared to October 2019 volumes).
The export of WMP from Argentina and Uruguay is positive, with Brazil and Algeria being the main destinations.
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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 CLAL.it
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