Severe drought affecting the quality of crops and pasture [News South America n°7/2018]

Period: March 19 – 30, 2018

The severe drought in the Southern Cone of South America continues to affect the quality of soybean and corn crops and pasture on many farms: this represents a major concern for the regional dairy industry.

in Argentina and Uruguay, cow’s milk production is slowly improving as early autumn temperatures are becoming comfortable for dairy herds. However, cream supplies are less than adequate to meet the seasonal demand for cream based products: premiums for milk butterfat remain high.

Fluid and UHT milk requests remain strong in Brazil. Conversely, cheese demand is weaker, which is hampering sales to retailers and food service.

In South America SMP export prices decreased, but remain above international values. The main reasons could be the sporadic production of SMP and the Common External Tariff (CET) of 28 percent for the import of dairy products into the Mercosur bloc.

WMP export prices are steady to slightly lower. With more condensed milk supplies, WMP processing is more active, while the overall demand is mostly steady.

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

TESEO: Argentina - Average monthly prices of Corn

TESEO: Argentina – Average monthly prices of Corn

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