The references of average prices for dairy products in the international market continue to assert themselves and are at an increasingly positive level for those who offer the products, given a relevant upward movement happened this Tuesday 1st, in the second tender in February within the business framework of event No. 301 of the Global Dairy Trade – Fonterra platform.
This commercial instance constitutes a highly relevant focus in the markets of this agri-food segment, especially for countries with an export base, such as Uruguay, where almost 80% of the milk produced is industrialized and traded abroad.
In the final tender in January, the reference had reached US$ 4,463 per ton and now, at the beginning of the second month of the year, the average price for all dairy products was US$ 4,630 (US$ 167 more per ton), after an increase of 4.1%.
It is still an extremely interesting value, following the 4.6% rise in the second auction in January.
The last drop was recorded in the final event of December, on Tuesday the 21st of that month, and was 1.5%.
In this week’s activity there were increases in the average values for all dairy products in which there were transactions.
This confirmation of the firmness of dairy products in international markets generates good expectations in dairy farmers in relation to a possible adjustment in the price they receive from the industry, something that was requested a week ago at a meeting of the dairy unions with the board of directors of Conaprole, with the promise of the cooperative command to improve the price paid for milk to dairy farmers already in February.
The events in 2022
General average for dairy
- Tuesday, January 4 + 1.5% US$ 4,247/ton
- Tuesday, January 18 + 4.6% US$ 4,463/ton
- Tuesday, February 1 + 4.1% US$ 4,630/ton
Average for whole milk powder
- Tuesday, January 4 0% US$ 3,866/ton
- Tuesday, January 18 + 5.6% US$ 4,082/ton
- Tuesday, February 1 + 5.8% US$ 4,324/ton
In the reading by sub-items, in the case of whole milk powder (WMP), which is the dairy product with the highest volume in Uruguay’s external placements, the average price this time had a rise of 5.8%, passing the reference value to US$ 4,324 per ton.
In the second sale of January there had been an improvement of 5.6% for this product, leaving the value at US$ 4,082 per ton.
The specific increase in whole milk powder was highlighted by the president of the National Milk Institute (Inale).
Interesting rise of 5.8% of the LPE at auction today in Fonterra! ? https://t.co/lda3hp0ajP
– Juan Daniel Vago Armand Ugon (@JuanDanielVago1) February 1, 2022
In this instance, 162 bidders participated for the sale of 28,463 thousand tons (a variation of -7.1% in volume compared to the previous sale).
OE
The next tender, which will be event No. 302, is scheduled for Tuesday, February 15 of 2022.
