Dairy Lease Prices Drop 9% in Uruguay Amid Economic Challenges
Sourse: dairynews.today
Uruguay's dairy sector faces significant economic challenges as lease prices decrease by 9% due to declining profitability and adverse weather impacts during 2024.
The decline is primarily attributed to reduced profitability caused by a decrease in milk prices and drought conditions. The average lease price for dairy farms was approximately $242 per hectare annually, marking a notable decline from the previous year.
The dairy sector is under economic stress, with lower milk prices paid to producers and drought affecting pastures and water supply. Although the current situation is challenging for many dairy farmers, there is potential for market improvements depending on the international dairy market and climatic conditions.
