Uruguayan Dairy Producers Anticipate Best Semester in Recent Years

Uruguayan dairy producers are optimistic about the upcoming first semester, projecting it to be the best in recent years. This optimistic outlook follows a modest growth achieved in March, notwithstanding the setbacks caused by heat waves. Justino Zavala of the Agremiación de Tamberos de Canelones highlighted that even though March's comparison is against a historically low period due to severe droughts, growth has been evident.

Zavala emphasized ongoing recovery efforts, with costs decreasing and the price of concentrates aligning favorably with milk prices. Presently, milk prices hover around 40 cents per dollar, primarily due to a drop in the dollar's value.

Improved weather conditions have also contributed to this positive forecast, with better pasture availability, as noted by Zavala. He remains hopeful that the stable conditions will pave the way for financial recovery for producers.

On the international front, Zavala reported favorable market conditions, with whole milk powder prices exceeding $4,000 per ton. Although China's purchase volumes are modest, global trade activities appear healthy. Zavala mentioned potential changes in trade with Mexico, suggesting a possible lift of restrictions that might allow for increased export opportunities.