Milk Prices in Uruguay: A Record Year Amidst Dollar Depreciation
Sourse: dairynews.today
The price of milk in Uruguay hits a high of $0.44 per litre in 2025, driven by the depreciation of the dollar and improved profitability for farmers.
The Uruguayan dairy sector marks a pivotal moment as the average price per litre of milk in June 2025 reaches a peak for the year, buoyed by the significant depreciation of the exchange rate. According to the National Milk Institute (Inale), the price is set at $0.44 per litre.
While it hasn't yet surpassed the records of $0.45-0.46 from winter 2023, this figure provides substantial relief for dairy farmers' profitability. In Uruguayan pesos, the average price paid by industries in June was $17.80 per litre, indicating a 16% year-on-year increase compared to the same month last year and exceeding the accumulated inflation for the last year (4.6% per the National Statistics Institute).
This real-term increase is crucial for the dairy value chain, evidencing an enhancement in producers' purchasing power, even though the price per litre is akin to June 2022 ($17.76). The appreciation of the price in dollars is directly linked to the depreciation of the exchange rate. Over the last year ending in June, while the dollar price of milk rose by 11.4%, the exchange rate depreciated by 10.3%, highlighting the dynamic nature of dairy incomes in a heavily export-dependent and dollarized economy.
The price per kilogram of milk solids (fat + protein), a key indicator of milk quality and value, showed interesting movements. It recorded $223.5 per kg in June, a slight 1.4% drop compared to last December but a notable 17% rise from June last year. This variability in solids pricing underscores the significance of milk composition in shaping producers' final financial returns and the strategic approach of dairy industries. Uruguay's price situation offers a positive signal for the region's dairy producers. Better profitability encourages investment and can support the recovery of milk production. For the international dairy market, the upturn in prices in a key origin like Uruguay is noteworthy as it could mirror broader supply and demand trends in the global dairy industry.
While it hasn't yet surpassed the records of $0.45-0.46 from winter 2023, this figure provides substantial relief for dairy farmers' profitability. In Uruguayan pesos, the average price paid by industries in June was $17.80 per litre, indicating a 16% year-on-year increase compared to the same month last year and exceeding the accumulated inflation for the last year (4.6% per the National Statistics Institute).
This real-term increase is crucial for the dairy value chain, evidencing an enhancement in producers' purchasing power, even though the price per litre is akin to June 2022 ($17.76). The appreciation of the price in dollars is directly linked to the depreciation of the exchange rate. Over the last year ending in June, while the dollar price of milk rose by 11.4%, the exchange rate depreciated by 10.3%, highlighting the dynamic nature of dairy incomes in a heavily export-dependent and dollarized economy.
The price per kilogram of milk solids (fat + protein), a key indicator of milk quality and value, showed interesting movements. It recorded $223.5 per kg in June, a slight 1.4% drop compared to last December but a notable 17% rise from June last year. This variability in solids pricing underscores the significance of milk composition in shaping producers' final financial returns and the strategic approach of dairy industries. Uruguay's price situation offers a positive signal for the region's dairy producers. Better profitability encourages investment and can support the recovery of milk production. For the international dairy market, the upturn in prices in a key origin like Uruguay is noteworthy as it could mirror broader supply and demand trends in the global dairy industry.
