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June 18, 2023
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With two union disputes to resolve, Uruguay exports more dairy

The Billing generated by Uruguayan exports of dairy products improved 9% in the first five months of 2023, compared to that achieved in the same period last year.

The data, positive for the export item that so far in 2023 occupies the third place on the podium behind pulp and meat, was disclosed at a time when two tensions develop between workers and companies: the union conflict between the unions of workers of Conaprole and of Trace.

A report prepared by technicians from the National Milk Institute (Inale), to which he agreed The Observerrevealed that considering a set of four items, in January-May it was exported for US$ 373.4 millionbased on data from the National Customs Directorate (DNA).

Considering the income accumulated in 2023 in relation to that section of last year, in whole powdered milk there was an increase of 30% (totaling US$ 246.7 million; in skimmed powdered milk there was a drop of 63% (US$ 17.1 million); in cheese the increase was 17% (US$ 51 million); and in butter it fell 38% (totaling US$ 23.6 million).

If the reading is done on the volume placed, in January-May 84,748 tons were exported and an increase of 34% in whole powdered milk was appreciated compared to the same period in 2022 (65,658 tons were shipped); a drop of 63% in skimmed milk powder (4,705 tons); it did not change in the case of cheese (9,977 tons); and a 40% drop in butter (4,408 tons).

Whole powdered milk continues to be, by far, the most exported product in volume (77.5% of the total shipped) and income (66% of the total obtained).

In relation to the average prices achieved, based on the comparison of the accumulated in 2023 to May and the same period of the previous year, it fell 3% in whole powdered milk; increased 1% in skimmed milk powder; advanced 17% in cheese; and rose 3% in butter.

Finally, considering the most recent, that is, only what happened with the businesses corresponding to April of this year, the average prices were:

  • US$ 3,812 per ton of whole powdered milk
  • US$ 3,521 per ton of skim milk powder
  • US$5,255 per ton for cheese
  • US$5,274 per ton of butter

The destinations

The Inale report also revealed that considering the last 12 months (rolling year) the main destinations were Brazil, Algeria and China.

With two union disputes to resolve, Uruguay exports more dairy

Powdered milk for export.

International market with casualties

The first tender of June (Tuesday 6) in the dairy trading platform Global Dairy Trade (led by the New Zealand company Fonterra) concluded with adverse data: a slight drop of 0.9% in the average price (considering all products) compared to the final tender in Maywith a value that remained at US$ 3,399 per ton.

It is the second fortnightly drop (both 0.9%) after two previous auctions with improvements in average values ​​(those of 3.2% and 2.5%).

In this last instance of sale, 23,119 tons were dispersed to 160 claimants, a volume 7.2% higher than that of the instance of 15 days before.

In the case of whole powdered milk, the product that Uruguay exports the most, the drop was greater, 3%, leaving the average at US$ 3,173 per ton.

The next tender is scheduled for this Tuesday, June 20 and will be event No. 334.

With two union disputes to resolve, Uruguay exports more dairy

Fonterra, one of the main dairy industries in the world.

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