Milk production is improving [News South America n°11/2019]

Period: September 16 – 27, 2019

South America transitions from winter to spring season and milk production is generally improving. Temperatures are becoming more comfortable to dairy cows, boosting their milk yields. According to several dairy farm operators, farm prices are not enough to cover all operating costs.

Milk supply is adequate to cover most manufacturing needs. However, the domestic consumption of dairy products, particularly in Argentina, continues to decline over time and, as a business alternative, some processors are looking to sell abroad, outside the Mercosur bloc.

Plants are prioritizing WMP over SMP

Plants are prioritizing the production of WMP over SMP. Drying schedules of condensed skimmed milk are limited and strictly committed to cover contractual needs. Regional SMP export prices shifted up.

WMP production is active, prompted by higher farm milk outputs. Export prices adjusted higher, in line with recent upward pricing trends in the global market. The market undertone is firmer as WMP supply is below the immediate need from buyers.

See all the information in the new webpage dedicated to the dairy market in South America on > - Milk Deliveries in Brazil – 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

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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