The higher milk production weighs on farmgate prices [News South America n°19/2018]

Period: September 17 – October 12, 2018

Farm milk production is robust in South America. Weather experts stated that, compared to a few years ago, the effects of el Niño are expected to be much less aggressive for the rest of the spring and summer seasons. In this way, milk production is anticipated to continue growing along with the typical seasonal patterns.

Due to a higher milk supply across the continent, farm gate prices decreased, resulting in lower milk-feed ratios for several dairy farm operations. Furthermore, many dairy farmers are struggling with high operating costs driven by a recent sharp devaluation of currencies.

With most balancing plant operators focusing on converting large condensed milk intakes into WMP, SMP production has been curtailed. Therefore, SMP export prices adjusted up in the region as supply is limited, below buyers’ needs.

WMP export prices adjusted down and now are steady. WMP production is very active, prompted by higher milk deliveries. Inventory levels are steady to building.

See all the information in the new webpage dedicated to the dairy market in South America on > - Farmgate milk prices in South America – Farmgate milk prices in South America

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 News South America, South America