Butter, dairy spreads and milk fats market in Uruguay

Earlier Report Observations

The Uruguayan market for butter, dairy spreads, and milk fats grew from 21 505 t in 2018 to 33 925 t in 2020. This expansion was driven by strong export performance, with butter being a key exported product, which stimulated higher production volumes. The market is underpinned by the state-owned cooperative CONAPROLE, which captures over 70% of the milk supply for processing.

Market volume contracted to 30 581 t in 2021 and further to 28 603 t in 2022. The decline in 2022 resulted from record dairy exports, where butter shipments surged by 34% in volume due to high international prices and increased demand from key markets like Brazil, Algeria, and China, diverting supply away from domestic consumption.

In 2023, the market recovered to 34 134 t. This rebound was supported by stabilized production and prices, coupled with lower export volumes compared to 2022, which increased domestic availability. CONAPROLE maintained its industry leadership, processing over 2 billion liters of milk, with butter accounting for approximately 6% of dairy revenue.

Production butter, dairy spreads and milk fats in Uruguay

In kind, 2017-2020, t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

Uruguay's production of butter, dairy spreads, and milk fats has grown for the second year in a row. In 2020, the country produced 46,844 tons, marking a 19.1% increase from 2019. Over the 2017-2020 period, production rose by 32.4%, with an average annual growth rate of 9.8%. The lowest output was in 2018 at 33,942 tons, which also saw the biggest decline of 4.1%.

Annual dynamics of production in Uruguay in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Uruguay

Exports in kind, t

After two years of growth, Uruguay's exports of butter, dairy spreads, and milk fats fell in 2020. Exports totaled 13,407 tons, a slight decrease of 1.0% from 2019. Over the 2017-2020 period, exports increased by 33.5%, with an average annual growth rate of 10.1%. The peak was in 2019 at 13,536 tons, while the largest jump occurred in 2018 with a 30.1% rise.

Annual dynamics of product's exports from Uruguay in kind, 2017-2020, t

From 2017 to 2020, Russia, Brazil, and Morocco were the top buyers of Uruguay's butter, dairy spreads, and milk fats. Russia accounted for 48.9% of exports in volume, Brazil for 8.6%, and Morocco for 7.3%. Together, these three countries made up 64.9% of total exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Uruguay in kind, 2017-2020

Exports in value, K $ US

Uruguay's exports of butter, dairy spreads, and milk fats in value terms dropped for the second consecutive year. In 2020, exports were valued at $43,923 thousand, a sharp 32.0% decline from the previous year. Over the 2017-2020 period, exports fell by 14.5%, with an average annual decrease of 5.1%. The highest value was in 2018 at $65,642 thousand, which also saw the largest increase of 27.8%.

Annual dynamics of product's exports from Uruguay in value, 2017-2020, K $ US

Between 2017 and 2020, Russia, Brazil, and Morocco dominated Uruguay's exports in value terms, collectively accounting for 67.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Uruguay in value, 2017-2020

Imports butter, dairy spreads and milk fats to Uruguay

Imports in kind, t

In 2020, Uruguay's imports of butter, dairy spreads, and milk fats amounted to 488 tons, a steep 48.9% drop from 2019. Over the 2017-2020 period, imports decreased by 52.7%, with an average annual decline of 22.1%. The largest increase was in 2019, with a 50.9% rise.

Annual dynamics of product's imports to Uruguay in kind, 2017-2020, t

From 2017 to 2020, Argentina, Brazil, and New Zealand were the main sources of Uruguay's imports in volume. Argentina supplied 40.0% of imports, Brazil 28.2%, and New Zealand 20.3%. Together, these three countries represented 88.5% of total import flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Uruguay in kind, 2017-2020

Imports in value, K $ US

In 2020, Uruguay's imports of butter, dairy spreads, and milk fats in value terms totaled $1,885 thousand, a 56.5% decrease from 2019. Over the 2017-2020 period, imports fell by 56.3%, with an average annual drop of 24.1%. The highest value was in 2019 at $4,337 thousand, which also recorded the largest increase of 41.2%.

Annual dynamics of product's imports to Uruguay in value, 2017-2020, K $ US

During 2017-2020, Argentina, Brazil, and New Zealand were the key markets for Uruguay's imports in value terms, together making up 87.4% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Uruguay in value, 2017-2020