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USDA - AMS: South America Dairy Market Overview (2019-06-06)

USDA U.S. Department of Agriculture - June 6, 2019


     South America Dairy Market Overview

     Report 23 - Released on June 6, 2019

     So far this year, the adverse effects of El Niņo have remained relatively minimal in the
     main dairy basins and crop areas of the continent. In fact, during the past two weeks, rain
     showers sustained favorable corn prospects in Brazil, while in Argentina and Uruguay, drier
     conditions allowed corn/soybean crop harvesting to resume.

     In Argentina, Uruguay and Brazil, raw farm milk output is seasonally improving as
     temperatures continue falling, boosting dairy herd comfort. Nonetheless, it is important to
     emphasize that the volume of milk produced so far this year is significantly lower than
     levels from the preceding year. Having said this, dairy processors, especially cheese
     makers, are paying higher milk prices to dairy farmers as milk intakes remain less than
     plenty to satisfy all manufacturing needs. The competition for milk among dairy processors
     is active right now. With higher farm gate prices and relatively fair operating costs, many
     dairy farmers have begun to recover business profitability, or at least reach the breakeven
     point. The sales of fluid/bottled milk have been hurt by the lack of raw milk to process. At
     this point, several plants are running at below full capacity.

     Information for the period May 27 -  June 7, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     ANGEL TERAN-RAMOS, 6084228593

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website:
     DMN Database Portal:

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