MD_DA130

     South America Dairy Market Overview

     Report 13 - Released on March 26, 2020

     Farm milk production is seasonally ramping up in the principal dairy basins of South
     America. During the past two weeks, lower temperatures boosted dairy cows’ yields, and
     scattered showers improved soil moisture in several corn/soybean farming areas. Compared to
     the rest of the world, South America has had more time to prepare for the impact of
     coronavirus. Preventing the spread of COVID-19 is the main issue addressed in most nations
     of the continent, including important dairy countries such as Brazil, Argentina, and
     Uruguay.

     In Argentina, on March 19th, the government placed a national quarantine until March 31st.
     This mandatory isolation policy excludes farmers and staff working in activities related to
     the production, distribution, and marketing of processed food. Nevertheless, physical
     agricultural markets are suspended. Since the availability of food for families is essential
     during this juncture, most dairy farms and dairy processing plants are actively operating,
     but have taken various security measures, such as downsizing of administrative staff and
     social distancing.

     At this time, there are no mandatory official policies related to the coronavirus prevention
     by the Brazilian national administration. However, at the state level, the state of Sao
     Paulo has initiated a quarantine that will last from March 24th to April 7th. Nationwide,
     farm milk production is seasonally higher. Fluid milk orders from the food service sector
     are slow due to the coronavirus crisis. Consequently, most shipments of bottled milk have
     been destined to the retail sector, triggered by strong atypical demand from households.
     Some milk shipments and deliveries have been delayed as fewer truckers are available on the
     roads. Several industry stakeholders say cheese production is less active as fewer
     manufacturing milk volumes are accessible as a result of the strong demand for bottled milk.
     Cheese sales are also down, while inventories build up. The UHT milk market is heating up as
     buyers continue buying and stocking to meet their immediate and short-term needs.



     Information for the period March 16 - 27, 2020, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     ANGEL TERAN-RAMOS, 6084228593
     Email: angel.teran@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