Uruguay Maintains Dairy Market Position Despite Algerian Import Decline

The latest Global Dairy Trade auction in July indicated an upward trend in dairy prices, with whole milk powder rising by 1.6% to a price of $3,486 per ton. The overall price index increased by 1.5%, with 26,889 tons traded, marking a 2.2% rise from the previous auction. Skim milk powder also saw a price increase of 2.8%, reaching $3,234 per ton.

Other dairy products experienced varying price changes. Butter milk powder led with a 10.5% increase, while lactose rose by 2%, anhydrous milk fat by 1.1%, and mozzarella cheese by 1.3%. However, butter prices fell by 0.6%, and cheddar cheese showed the largest decline, dropping 6.5%.

These price movements occur as Algeria, a significant dairy importer from the region, reduced its imports. From January to May 2026, Algeria decreased its skim milk powder imports by 12% and cheese imports by 39% compared to the same period the previous year. Despite this, Uruguay continues to be a primary supplier of whole milk powder to Algeria, retaining its third position among butter suppliers.

The Uruguayan dairy industry remains focused on maintaining its strategic market position, with the National Institute of Milk (Inale) launching a Certified Artisan Cheese initiative on July 24. This program aims to distinguish cheese producers adhering to specific technical and responsible production processes, fostering sustainable development and market integration.