Daytime temperatures continue to rise in South America, boosting heat stress on dairy cows and diminishing farm milk production, particularly in Argentina, Chile and Uruguay.

In other countries of the continent such as Brazil, Perú, and Ecuador, farm milk intakes are at or reaching the peak of the year.

Milk volumes are still adequate to meet the main dairy manufacturing needs in the key exporter countries, particularly Argentina and Uruguay.

Milk supplies moving into dairy powder processing are less than usual, making it impossible for balancing plants to reach full capacity.

SMP export prices adjusted higher in South America. SMP production is very limited as most processors are focusing on converting less than usual whole milk volumes into WMP to meet contractual requirements.

WMP export prices are higher, prompted by a strong demand, but also by higher manufacturing costs. The WMP market tone remains on a firmer position as supply is not enough to meet customers’ immediate needs.

Source: CLAL

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