Heavy rain in Brasil hampers milk production [News South America n°4/2016]

Period: November 28 – December 9, 2016

Argentina and Uruguay

  • Weather situation: the arrival of summer is gradually increasing temperatures, prompting stress in dairy cows.
  • Milk producers: forage and pasture conditions are fair to good. Milk prices paid to milk producers in Uruguay during October were $8.93 Uruguayan pesos (UYU) per liter (about 0.31 $/liter or 28.77 €/100lt), up +1.6% from last month and +18.0% above October 2015.
  • Overall market situation: milk volumes going to bottled milk processing are lower as most schools are closed. Therefore, there is more milk available for manufacturing, even if milk intakes are declining. Cheese and yogurt processing are very active with a strong demand from retailers and food service.


  • Milk production: is uneven, as a result of the weather situation.
  • Weather situation: heavy rain conditions prevail in the main dairy state, Minas Gerais.
  • Milk producers: the average price received by dairy farmers during November was 1.34 Brazilian reals ($R) per liter (about 0.42$/liter or 37.20€/100lt), down -10.9% from the previous month, but +27.3% above November 2015.
  • Overall market situation: bottled milk demands from grocery stores and restaurants are good, but lower from educational institutions. Large milk volumes are clearing into WMP manufacturing, as demand from the food processing industry is strong. UHT milk processing is less active this week.
  • Argentina: -11.48% (Jan-Oct 2016 year-over-year)
  • Uruguay: -11.37% (Jan-Oct 2016 y-o-y)
  • Brazil: -5.08% (Jan-Sep 2016 y-o-y)
  • Chile: -1.57% (Jan-Oct 2016 y-o-y)

WMP prices for 26% butterfat: 2,950 – 3,550 USD/MT, F.O.B. port (about 2.740 – 3.298 €/MT).
Export prices are higher, in line with the upward WMP price movement in the most recent GDT event. Brazil continues importing WMP mainly from Uruguay as demand from the food processing industry remains strong.


CLAL.it - Cow's milk deliveries in Brazil

CLAL.it – Cow’s milk deliveries 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.

Posted in News South America, South America

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