Uruguay: Milk production continues to decline; Conaprole shipments fell 13% in June

In June, Conaprole's milk shipment decreased by 13.27% compared to the same month last year, with a 1.12% decline over the past 12 months. The first half of the year saw a 4.3% year-on-year drop, leading to a loss of US$15-US$18 million for producers, primarily due to lower cow productivity amid excess rain. The cooperative is seeking long-term financial solutions and has secured milk prices until September. Reduced imports from China have significantly affected the dairy market, forcing natural suppliers to find alternative markets and increasing competition for Uruguay. Brazil has helped maintain export prices despite logistical and exchange rate challenges.

In June, the shipment of milk to Conaprole was 109.3 million liters, a drop of 13.27% compared to the same month last year. In the last 12 moving months (July 2023-June 2024) the decrease was 1.12%, Alejandro Pérez Viazzi, vice president of the cooperative, told Conexión Agropecuaria. In the first semester the year-on-year drop was 4.3%. “Around US$15-US$18 million less dollars went into the pockets of the producers,” commented the director of the cooperative Daniel Laborde to 100% Mercados de radio Rural. Basically associated with lower productivity per cow, in an autumn marked by excess rain. The cooperative is evaluating long-term financial solutions, Laborde said, without going into details. From a commercial point of view, production is set until mid-October at values above the latest GDT references. “This allows us to guarantee producers that the milk price that currently exists will be maintained at least until September,” said Laborde. The lower imports from China are ...