An excess of milk without a processing destination [News South America n°20/2018]

Period: October 15 – 26, 2018

Milk production continues to increase in South America. At this point, there is an excess of milk without a processing destination, since some manufacturing plants are closing, while others are in transition of ownership and/or in the process of restructuration.

Many dairy farmers continue struggling with economic issues as operational costs remain high and farm gate prices are relatively low.

Demand for milk caramel, yogurt, and cheese is strong, while bottled and UHT milk requests are fair to good.

WMP export prices slightly decreased in South America. Most balancing plants are at, or near full capacity, processing WMP, while milk production is steadily increasing. Brazil is producing more WMP, thus, depending less on WMP imports coming from Argentina. So Argentina has been forced to export more to countries outside the Mercosur bloc, such as Algeria, which is used to paying lower prices.

Drying schedules for SMP have been limited and are mostly driven by contractual needs. The Brazilian demand for SMP is strong, but supplies are scarce. As a result of this situation, SMP export prices slightly increased.

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

CLAL.it - The increase in milk deliveries in Argentina

CLAL.it – The increase in milk deliveries in Argentina

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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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