Uruguay's Milk Prices Surge by 19%, Boosting Purchasing Power

Milk Price Increase in Uruguay

The dairy sector in Uruguay showed encouraging signs in January 2025, with milk prices at farms reaching $16.9 pesos per liter (approximately $0.39 USD), reflecting a 19% year-on-year increase in local currency and a 6% increase in USD.

Improvement in Payment for Solids

This boost was accompanied by an improvement in payment for milk solids, which rose by 17% compared to the same month of the previous year. Additionally, there was a modest increase month-on-month, with rises of 2.4% in pesos, 3.2% in dollars, and 1.4% in payment per kilogram of solids.

Purchase Power Surge

Milk purchasing power also saw a notable increase, with a 15.3% rise in January 2025 compared to January 2024, driven by a 19.1% rise in the milk price index versus a 3.3% increase in the cost index. However, it remains 19 points below the peak achieved in March 2014.

Milk Production Growth

The quantity of milk sent to processing plants reached 165 million liters in January 2025, marking a 0.8% increase compared to the previous year, confirming a trend of growth in production sent for processing.