MD_DA130 South America Dairy Market Overview Report 41 - Released on October 12, 2023 NOTICE: After October 16, 2023, all information found on this report will transition to a new PDF format. The same data will be collected and disseminated through AMS Marketing Analysis and Reporting Services (MARS) platform. The new pdf report can be accessed on the AMS website at: https://www.ams.usda.gov/mnreports/ams_1040.pdf Seasonal milk production is improving throughout the region. Spring flush is on the horizon if not already occurring in some localities. For the first time in the 2020s, there is not a full-on drought in key dairy basins on the continent. That said, the drought effects are still being felt in Argentina, as recovery continues for farmers in that country, particularly regarding feed availability/costs. Still, increases in milk output are expected for most areas of the continent. In general, contacts concur that milk production is expected to continue to pick up in earnest when compared to previous years. Processing in Argentina and Uruguay are benefitting from the increases in milk output. Market tones, though, are steady despite growing inventories. Recent global dairy commodity bulls, along with regular importing activity from Brazil specifically, but also Northern Africa and the Middle East, are keeping the market pulse healthy. Brazilian contacts say despite some slowdowns in importing compared to 2022, they are still actively working to fulfill pipelines as far in advance as possible. Contract talks are ongoing for quarters one and two of next year. Information for the period October 2 - 13, 2023, issued biweekly Published by: Dairy Market News - Madison, WI ISRAEL WEBER, 608-422-8601 Email: israel.weber@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov