High quality feed supports milk production in Brasil [News South America n°5/2016]

Period: December 13 – 23, 2016

Argentina and Uruguay

  • Milk production: is lower, in line with summer patterns. Overall, milk supplies are in balance with processing needs.
  • Weather situation: recent rains have helped improve the quality of pasture and forage.
  • Overall market situation: there is good interest from customers for flavored milk.


  • Milk production: is trending lower in the southern states. However, dairy producers from Minas Gerais and other nearby states note atypical steady milk yields, mainly due to high quality feed.
  • Overall market situation: cheese manufacturing is active and inventories are building.  Large manufacturing milk volumes are clearing into WMP processing as the domestic demand is becoming stronger. Consequently, interest for spot milk loads is increasing. A few weeks ago, the Brazilian government enacted a law requiring manufacturers from the northeastern region to process reconstituted UHT and pasteurized milk only from domestically produced dairy powders.
  • Argentina: -12.12% (Jan-Nov 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: 2,850 – 3,450 USD/MT, F.O.B. port (about 2,740 – 3,316 €/MT).
prices were adjusted lower. The active WMP processing in Brasil is putting pressure on imported WMP prices. On the other end, large export transactions outside the Mercosur block continue active at prices below $3,000 per metric ton. Inventories are steady to higher in Brazil, but slightly lower in Argentina and Uruguay.

CLAL.it - Argentina: main purchasing countries of WMP

CLAL.it – Argentina: main purchasing countries of WMP


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.

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  1. […] MILK DELIVERIES Argentina: -12.12% (Jan-Nov 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)  […]

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