Brazilian Government is buying milk powders to help needy people [News South America n°8/2020]

Period: April 13 – 24, 2020

Argentina+8.8% Milk production Jan-Mar 2020 y-o-y

In Argentina, Uruguay, and Paraguay, farm milk output is slightly higher, in line with early-autumn seasonal patterns

Scattered showers improved the growth of corn and soybean. This aspect, together with the recent decline in oil prices, is expected to lower the cost of grains, making milk more profitable given current high farmgate prices.
Milk intakes are less than adequate for some processing needs. Cream supplies are still short, and the milk butterfat market remains on a bullish standing. - Argentina Milk deliveries – Argentina Milk deliveries

In Brazil, milk production is stable.
The Brazilian Government, to deal with the Coronavirus crisis, held an auction to buy several hundreds of tons of Powdered Milk to distribute to populations in vulnerable situations, while also helping to reduce some milk powder stocks.

Unlike a month ago, sales of UHT milk and yogurt at a retail level are losing steam as grocery stores are reported to have enough stock on the shelves. Due to high sales volumes of dairy products, some hypermarkets have limited weekly ad promotions.

Exports are slowing down, due to the closure of some ports on the southern coast.

SMP export prices moved down during the last weeks, following the global trend. In this period, the production of SMP is unsteady as operators are focusing on converting large volumes of condensed whole milk into WMP. So, WMP production is still active, while inventories continue building.

Consequently, WMP export prices declined. In some countries, the Government is actively buying WMP for social programs, reducing availability for the private sector. WMP regional market tone is generally weak as uncertainty predominates among many participants of the industry.

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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