Argentina’s September milk production increased 0.3% YoY, continuing recent trends. YTD this brings Argentina’s production up by 0.7%, and from August, the figure sits 4.4% higher. Processing has declined with August’s figures showing a decline of 5.9%. This is on top of the decline of milk processing into whole milk powder (WMP), which has declined 18.8% YoY.
The domestic milk price continues to increase with the current milk price sitting at AR$771.17/kg MS, despite the increase of nearly AR$30/kg MS, the strength of the USD has the figure declining 10c/kg MS when converted into USD, at US$4.89/kg MS.
While September and August production increased, production declines in June and July have followed through into exports, with September’s exports reporting a decline. Total dairy exports out of Argentina in September, declined by 5% YoY; however, strong exports earlier in the year have the nation sitting up by 8% YTD. From a value perspective, total dairy exports increased 11%.
Milk powders had mixed results with WMP reporting a decline of 10% YoY, while SMP reported a significant increase of 56% YoY. North Africa drove the WMP declines with a decline of 62% YoY, while South America drove SMP increases, up 134% YoY.
Both milk fats also declined, with AMF un-exported in September, while butter declined 26% YoY. Butter declines were driven by a decline of exports headed to Russia, with the nation taking 85% less YoY.
Cheese and whey also experienced varied results in September, with cheese increasing 4% YoY, while whey declined 22% YoY. South America increased their purchases of both of these commodities, up 20% and 23% YoY respectively.
From a value perspective, SMP had the largest gain, up 103% YoY.
