Milk powders less available in South America [News South America n°4/2018]

Period: February 5 – 16, 2018

Unusual heat and dry climate dominated the main dairy basins of Argentina, Uruguay, and Brazil, which caused considerable stress on dairy herds and summer crops. As a result, farm milk volumes and fat and protein components are declining.

Milk intakes in Argentina and Uruguay are still adequate to cover the main dairy manufacturing needs, but cream supplies are very tight.

Milk deliveries in Uruguay during December 2017 were +2.8% higher if compared to Dec 2016.
1.9056 billion liters were delivered in 2017, +7.36% if compared to 2016.

Milk and cream supplies in Brazil are less than sufficient to meet the strong internal demand. Schools are buying bottled milk after the summer break, and the demand for milk powders from the food processing industry is good.

SMP and WMP export prices in South America increased slightly, in line with latest GDT auctionsSMP inventories are becoming less available in the market, since milk production is lower and WMP processing is the focus of production for most dryer operators at this point. The lack of cream in the market is driving the regional values of WMP, and inventories are becoming tight throughout the region because of the lower milk productions.

See all the information in the new webpage dedicated to the dairy market in South America on CLAL.it >

CLAL.it - South America: WMP export prices

CLAL.it – South America: WMP export prices

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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CLAL Team
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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