Conaprole Focuses on Price Stability and Indonesian Market Expansion

Conaprole, a leading Uruguayan dairy cooperative, has set its strategy to maintain current prices for producers until the end of the fiscal year on July 31. The company's director, Juan Parra, emphasized the importance of not making premature price adjustments and left open the possibility of a price adjustment depending on spring sales performance.

Price Strategy: Caution and Stability

Conaprole is committed to securing the current value for producers, only considering distributing excess funds if the spring market achieves competitive prices. Parra stated, "We cannot ensure a price adjustment if we are unable to secure good sales in the spring, which would necessitate a price drop. It would not be logical."

Commercial Expansion: Targeting Indonesia

As traditional markets face challenges, Conaprole is accelerating its efforts to penetrate the Southeast Asian market, with Indonesia becoming a priority following recent market approvals. The Indonesian market is described as "price-sensitive" but strategic due to its demand volume, offering a means to diversify export risks.

• Market Profile: Indonesia is seen as a "price buyer" market, sensitive to international price movements, yet its demand volume makes it strategic for export diversification.

Challenges in Brazil

Despite new market opportunities, Brazil remains a significant concern. The country, a key Mercosur partner, has an ongoing investigation into alleged dumping by Uruguayan exporters, including Conaprole. The outcome of this investigation will be crucial for the cooperative's ability to generate excess funds for possible price adjustments to its members.