milk,
milk-production,
export price
An excess of milk without a processing destination
Milk production continues to increase in South America. At this point, there is an excess of milk without a processing destination, since some manufacturing plants are closing, while others are in transition of ownership and/or in the process of restructuration.
Many dairy farmers continue struggling with economic issues as operational costs remain high and farm gate prices are relatively low.
Demand for milk caramel, yogurt, and cheese is strong, while bottled and UHT milk requests are fair to good.
WMP export prices slightly decreased in South America. Most balancing plants are at, or near full capacity, processing WMP, while milk production is steadily increasing. Brazil is producing more WMP, thus, depending less on WMP imports coming from Argentina. So Argentina has been forced to export more to countries outside the Mercosur bloc, such as Algeria, which is used to paying lower prices.
Drying schedules for SMP have been limited and are mostly driven by contractual needs. The Brazilian demand for SMP is strong, but supplies are scarce. As a result of this situation, SMP export prices slightly increased.