Less milk available for processing companies [News South America n°11/2020]

Period: June 23 – July 17, 2020

Brazil+9.8% farmgate milk price June 2020

In Brazil, Milk production is decreasing. The lack of rains is reducing the availability and the quality of forage in most dairy basins. Due to the decrease in raw milk accessibility, farmgate milk prices are inching up and are expected to remain high in the upcoming weeks.

Milk volumes are below adequate to meet all dairy processing needs, keeping stocks of dairy products low.
In the Spot market, fresh milk, UHT and Cheese prices are increasing.

CLAL.it - Brazil Farmgate Milk Prices

CLAL.it – Brazil Farmgate Milk Prices

Argentina+10.9% milk production
May 2020 y-o-y

Unlike Brazil, in Argentina and Uruguay, farm milk production is rising, driven by favourable weather. However, in some dairy basins in southern Argentina, much cooler winter temperatures are starting to take a toll on cows’ comfort and yields.

The production of UHT milk has been a priority during this COVID-19 crisis, decreasing the milk volumes available for the production of Cheese, Yogurt, and Milk Powder, although the interest for these commodities remains hearty.

Export prices of Milk Powders are higher, driven by a strong demand both inside and outside the Mercosur zone. Given the lower milk volumes accessibility, the productions of SMP and WMP are less active than in recent weeks. SMP stocks on the market are very limited, as WMP production is favoured.

Overall, for the period January – May 2020, the export of WMP of Argentina recorded an increase of +62.89%, reaching 35,318 Tons. Opposite situation for the SMP, where for the same period is observed a decrease of -26,37%, down to 2,663 Tons.

Exports of Milk powders from Uruguay for the period January – May 2020 are going down, -7,47% for the WMP (-3.748 Tons) and -41,5% for the SMP (-3.011 Tons).

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CLAL.it - Export WMP Argentina

CLAL.it – Export WMP 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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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 Argentina_en, Brazil, News South America, South America, Uruguay_en