Period: April 16 – 27, 2018
The actual conditions of the forage, soybeans and corn crops are reported to be mostly poor in Argentina and Uruguay: this could increase imports of concentrates and, therefore, the operating costs of the dairy farmers. Nevertheless, farm milk production continues growing driven by comfortable autumn temperatures.
Milk production has been reduced in Brasil, in part because some small and medium milk producers are closing their farms, mainly due to lower farm prices and higher operating costs. As a result, milk and cream supply are becoming less available, prompting the competition among processors, especially between cheese makers and bottled milk manufacturers.
In Chile, milk volumes are less than adequate to cover all processing needs. Consequently, dairy imports mainly from the United States are improving and expected to grow at least for the rest of Q2. Imports from the U.S. to Chile do not pay tariff due to the free trade agreements of the Trans-Pacific Partnership (TPP).
SMP export prices increased slightly in South America, remaining well above Europe and Oceania levels.
In order to increase cream volumes, most processors are limiting WMP production and increasing SMP production. This is boosting regional WMP values.
See all the information in the new webpage dedicated to the dairy market in South America on CLAL.it >
CLAL.it – Farm-gate milk prices in Brazil
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 CLAL.it
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The CLAL.it 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.
