In June 2025, the price of milk in Uruguay's dairy farms increased by 16% compared to the previous year, marking the highest price of the year at US$0.44 per liter and improving profitability for producers.
Uruguay's dairy sector is celebrating as the average price of milk on farms reached $17.8 per liter in June 2025, reflecting a substantial increase of 15.9% compared to the same month the previous year. This rise not only surpasses inflation but also offers a real improvement for dairy producers. Amid global challenges, this upswing is a positive sign for the profitability of dairy farmers and the sustainability of milk production in the country.
The Devaluation, A Strategic Ally for Producers' Dollars
The strength of Uruguay's milk price is magnified when analyzed in foreign currency. In June, the average price in dollars stood at US$0.44 per liter, marking an annual increase of 11.4%. This rise is largely attributed to the devaluation of the exchange rate, which has directly benefited producers' revenues. Compared to December 2024, the price in pesos rose by 4.3%, but in dollars, the improvement was 12.3%, demonstrating how monetary policy can positively impact the dairy economy.
The Key Indicator of Kilograms of Solids Also on the Rise
Beyond volume, the quality of milk is a determining factor for profitability. In June, the price per kilogram of solids (fat and protein), a crucial indicator for the dairy industry, stood at $223.5, representing a notable increase of 16.7% compared to the same month the previous year. This data reinforces the positive trend and underscores the importance of efficiency in producing high-value dairy components, essential for manufacturing dairy products in high market demand.
June Marks the Annual Peak in Dollars: Sustained Recovery
The value of US$0.44 per liter reached in June 2025 is not just an impressive annual figure; it is the highest dollar price recorded thus far this year. This value consistently surpasses averages from January to May and importantly, recovers levels observed during the same period in 2023. The historical series analyzed by Diario Cambio shows a sustained improvement in producer prices compared to 2024, indicating a phase of recovery and optimism for Uruguay's dairy value chain.
Prospects and Challenges for Regional Dairy Production
The improvement in producer prices is crucial for encouraging investment, technology adoption, and growth in dairy production in Uruguay. This scenario of greater profitability provides dairy farmers with a respite and an opportunity to strengthen their operations. For sector analysts and international markets, the positive price trend in an exporting country like Uruguay serves as a barometer of global supply and demand dynamics, suggesting a possible improvement in global dairy market conditions in the medium term.
