Uruguay's Dairy Output Rises Amid Global Price Adjustments

Uruguay's dairy sector has witnessed substantial growth in output, with official data indicating that from January to April, milk remittances reached 634 million liters, marking a 9% increase compared to the previous year. Over the last twelve months, from May 2025 to April 2026, the industry received 2.262 billion liters, reflecting a 10% growth from the prior period. In 2025, the country achieved a historic record in milk remittance with 2.212 billion liters, which is an 8.4% rise from the previous year. Furthermore, production measured in solids increased by 9.7% to 172 million kilograms.

Despite the growth in production, international dairy prices are undergoing adjustments. The recent Global Dairy Trade event reported a second consecutive decline for major dairy commodities. Whole milk powder prices fell by 3.1%, reaching $3,589 per ton. The general auction index also dropped by 2.8% to $3,979 per ton. Skimmed milk powder decreased by 3.6% to $3,368 per ton, and butter prices adjusted by 2.4% to $5,516 per ton. The exception was lactose, which increased by 4.2%, being the only product to end positively in the auction.

Despite these international price adjustments, the President of INALE, De Izaguirre, remarked that prices remain at acceptable levels for Uruguayan production. He highlighted that the current relationship between milk prices and grain costs allows producers to maintain reasonable margins, supporting the continued growth observed in the first half of the year.