farmers,
milk price,
produce
Temperatures and milk prices inspire Argentinian farmers to produce more
Temperatures dropped in Argentina, increasing the comfort of cows, and farmgate milk prices remain relatively high, inspiring farmers to produce more: milk deliveries in April 2018 have been +9.11% higher than April 2017 and +11.33% higher than April 2016. It is reported that large milk producers with the capacity of economies of scale continue acquiring small/medium operations in a progressive consolidation within the industry.
In Argentina butterfat and protein content in milk are near the highest level of the year: consequently, cream volumes are becoming more available in the market.
An excess of rain and mud is complicating the health status of dairy herds in Uruguay, particularly in the southern region of Río Negro, affecting the production of milk. Dairy producers in Uruguay are still waiting to obtain the compensation from the Debt Guarantee Fund.
Milk production in Brazil remains low, keeping farmgate prices relatively high and therefore increasing the manufacturers' costs. Milk and cream supply remains less than adequate to meet all processing needs except for bottled milk and cheese, and dairy imports from nearby countries are strong and expected to remain active throughout fall and winter.
Skim milk powder (SMP) export prices in South America decreased. The demand is stable, but higher condensed skim milk volumes increase SMP availability. Bad weather conditions in Uruguay curtailed SMP processing in some plants, but is expected to be back to normal in the next few weeks.
Whole milk powder (WMP) export prices adjusted higher, then remained stable. Condensed whole milk supplies are becoming more accessible in the market, and WMP supplies are in balance with demand.
