Uruguayan Dairy Exports Grow Despite Decline in Some Products

The Uruguayan dairy industry has successfully navigated a tumultuous year, closing 2024 with $853.9 million in revenues—a modest 0.5% increase compared to the previous year. This growth, outlined in the latest report from the National Institute of Milk (INALE), highlights how the sector remains vigorous despite challenges posed by declining sales in certain products.

Market Diversification as a Key Driver

The uptick was primarily driven by increased exports of skimmed milk powder (SMP) and butter. Brazil, Algeria, and Russia emerged as key markets, showcasing Uruguay's ability to expand its international reach.

While exports of SMP saw a remarkable increase of 66% in volume and 36% in value, butter followed suit with a 13% rise in exported volumes and 28% in revenue. These figures underscore the industry's strategic move towards market diversification.

Challenges in Full-Cream Milk Powder and Cheese

Despite these successes, the industry faced setbacks with full-cream milk powder (FCMP) and cheese exports, which declined by 1% and 5%, respectively. This downturn impacted revenue, with FCMP and cheese seeing declines of 1% and 9% in earnings. These challenges reflect the global market's volatility and underscore the need for adaptive strategies.

Price Fluctuations on the Global Stage

Importantly, international prices have been less stable. The average annual price for butter surged by 38%, whereas SMP and cheese experienced price drops of 11% and 1%, respectively. The fluctuations in pricing highlight the unpredictable nature of global dairy markets and present both risks and opportunities for Uruguayan exporters.

Overall, the Uruguayan dairy sector's 2024 performance underscores both the potential and the challenges existing in today's global market.