The effects of La Niña on milk production [News South America n°3/2018]

Period: January 22 – February 2, 2018

La Niña has affected milk production in different ways throughout South America:

  • in the main dairy states of Brazil (Minas Gerais, Goiás) milk production continues improving;
  • high temperatures and dry conditions in several dairy basins of Argentina (Buenos Aires, Córdoba, Entre Rios) continue hampering farm milk yields;
  • milk productions in Uruguay are tending lower, but are above last year’s levels.

Nevertheless, with most schools closed, requests from bottled milk producers in Argentina and Uruguay are down, and manufacturing milk volumes are more than sufficient to cover other main dairy product processing needs such as cheese and yogurt.

Butter production is still active, especially in Uruguay, with good demand from the domestic market, as well as from Russia.

During December 2017, nominal prices paid to milk producers in Argentina increased 22% from December 2016.

UHT milk sales are up in Brazil as buyers’ interest is ramping up. The inventories of cheese, especially Mozzarella, remain high in many processing plants.

SMP export prices have a wider range. SMP inventories are becoming tight in the region, especially in Argentina and Uruguay where higher summer temperatures have reduced milk productions. Meanwhile, the steadiness in the Brazilian SMP market is putting some pressure on SMP import prices from nearby countries.

WMP export prices adjusted for a narrower range. WMP production is very active in Brazil as WMP processors try to satisfy the fair/good domestic demand, reducing the need to import from nearby countries.

See all the information
in the new webpage dedicated to
the dairy market in South America
on CLAL.it >

CLAL.it - Brazil SMP imports decreased

CLAL.it – Brazil SMP imports decreased

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

TwitterLinkedInFacebook... share
CLAL Team
About

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.

Posted in News South America, South America