Uruguay Dairy Exports Fall 29% in August as Algerian Purchases Collapse
Uruguayan dairy exports totalled US$64 million in August, down 29% from US$90 million a year earlier, according to Uruguay XXI. Algeria cut purchases by 88% to US$5 million, a US$36 million loss that outweighed gains in Brazil, Mexico, Venezuela and Saudi Arabia. Year-to-date exports stand at US$575 million, just 1% above 2025.
Uruguay's dairy exports fell to US$64 million in August, a 29% decline from the US$90 million recorded in the same month of 2025, according to the monthly foreign trade report published by Uruguay XXI. Dairy products accounted for 6% of the country's total exports for the month and held fourth place among Uruguay's leading export products, behind beef, pulp and soybeans. The figures were reported by Ámbito and adapted by MilkPoint.
Algeria drives the decline
The single largest factor behind the drop was Algeria. Purchases by the North African country collapsed 88% year on year, falling from US$41 million in August 2025 to US$5 million. The US$36 million difference was far larger than the combined gains recorded across the markets that expanded during the month, including Brazil, Mexico, Venezuela and Saudi Arabia.
The weakness extended across the continent. Dairy shipments to Africa as a whole fell 64% year on year in August, driven by Algeria and by the halt in purchases from Côte d'Ivoire, which had imported US$2.2 million worth of Uruguayan dairy products in the same month last year. Algeria slipped to third place among destinations with an 8% share, despite the weight it has historically carried in the sector's export mix.
Brazil leads the destination ranking
Brazil consolidated its position as the main buyer of Uruguayan dairy, taking a 30% share. Sales to Brazil reached US$20 million in August, 13% more than a year earlier. Mexico posted the sharpest increase of any destination, moving up to second place with a 9% share after purchases rose 238% to US$6 million.
- Brazil: US$20 million, 30% share, up 13% year on year
- Mexico: US$6 million, 9% share, up 238%
- Algeria: US$5 million, 8% share, down 88%
- Venezuela: US$5 million, 7% share, up 243%
- Saudi Arabia: US$4 million, 7% share, up 57%
Venezuela ranked fourth with a 7% share after lifting purchases 243% to US$5 million, returning that market to the group of Uruguay's most dynamic destinations years after it was the leading buyer of Uruguayan milk powder. Saudi Arabia completed the top five, also with a 7% share, after expanding purchases 57% to US$4 million.
Whole milk powder volumes fall, prices hold
Uruguay shipped almost 11,000 tonnes of whole milk powder in August at an average value of US$3,720 per tonne, practically unchanged from the average price recorded in July. Volumes were well below the previous month, when shipments approached 18,000 tonnes. Prices therefore held steady while volumes contracted sharply.
Year-to-date growth narrows to 1%
August's performance began to weigh on the annual result. Between January and August, Uruguayan dairy exports totalled US$575 million, only 1% above the same period of 2025. Despite the August collapse, Algeria remained the second-largest destination for the year to date, with a 26% share.
Brazil led the cumulative ranking with 30% of sales and US$173 million in exports, 12% more than in the same period last year. Mexico, Venezuela and Saudi Arabia were also among the fastest-growing markets year to date, although at values well below those of the two main buyers, at US$30 million, US$22 million and US$21 million respectively.
