Growing demand of drinking milk and cream [News South America n°5]

Period: March 2 – 13, 2020

 The climate in Argentina, Brazil and Uruguay has been mainly dry and warm during the last weeks, promoting the growth of second-crop corn in southern Brazil and improved the development of summer grains in Argentina.

Argentina+5.5% milk production January 2020 y-o-y

The good fodder quality and favourable weather led to an improvement in pasture quality and in farm milk yields in South America. Milk production is abundant and, apart from Brazil,it is able to meet manufacturing needs within the industry.

The demand of Fluid Milk and UHT Milk is improving for schools, grocery stores and restaurants. Cream demand is still in a firm position as supplies remain below adequate to meet all the needs of buyers and end users. However, cream volumes are anticipated to increase throughout the fall season. - Brazil per capita Milk consumption – Brazil per capita Milk consumption

Due to a greater availability of milk, SMP production is higher, highlighting an increase of stocks.

SMP and WMP prices are decreasing, following the international bearish trend.

Milk powder demand is limited due to the outbreak of Coronavirus, especially in Brazil. This is leading to most Argentinian and Uruguayan manufacturers to lower their prices to be more attractive to buyers.

See all the information
in the new webpage dedicated to

the dairy market in South America
on > - Brazil per capita Butter consumption – Brazil per capita Butter consumption

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