MD_DA130

     South America Dairy Market Overview

     Report 11 - Released on March 16, 2023

     Farmers in the South American sphere are facing a number of climactic challenges, still, but
     those challenges vary widely from one area to another. In Brazil, heavy rainfall has delayed
     corn planting. The long lasting drought conditions of Argentina and Uruguay, despite recent
     expectations of improved/neutral weather patterns, are still affecting current and upcoming
     pasture and feed availability.

     Due to a number of factors, the dairy commodity importing pipeline into Brazil, namely of
     skim milk powder, has slowed down in early 2023 after a busy second half of 2022. Marketers
     say there are expectations they will look at other global partners if Brazilian importers
     continue to ebb purchasing. Milk availability may become a concern, though. Feed cost
     increases, due in part to the inclement weather mentioned above, are expected to keep a
     bearish pressure for the near-term on milk output. Regardless, skim milk powder and whole
     milk powder contacts say markets are somewhat steady currently. Uruguayan exports of cheese,
     whey, and whole milk powder are steady to stronger early in the year, according to reports.



     Information for the period March 6 - 17, 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