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Latin America sees milk production bump

05 August 2021


According to the latest update from Quarterra, milk production in Latin America has lifted 3.3% in the year to May compared to the same period last year, writes Bronwyn Magee, AHDB analyst.

Volumes have continued to expand in most parts of the region, with the exporting countries seeing particular growth.

Favourable weather conditions have contributed notably to this increase, helping those countries previously impacted by drought to see production move back into growth.

Elevated milk prices have also supported this increase in volumes. On the domestic front, higher prices achieved in recent months have enabled producers to absorb increases in operating costs. Meanwhile, exporting countries have been able to increase milk prices due to the recent strength in global markets.

Higher production in Brazil has seen import demand drop back significantly. As such, this has freed up product to be exported further afield to destinations such as Algeria and China in recent months. However, the fall in prices at the latest GDT event, particularly that of WMP, may dampen commercial export opportunities going forward.

TheCattleSite News Desk


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