Concentrated milk and cream market in Uruguay

Earlier Report Observations

The market for concentrated milk and cream in Uruguay expanded from 200 thousand tons in 2018 to 248 thousand tons in 2020. This growth was initially supported by an increase in national milk production and a restructuring of the dairy quality control system under the National Milk Institute. The COVID-19 pandemic in 2020 further boosted demand for long-shelf-life dairy products and led to supply chain adjustments, while updated regulations for thermally treated milk, including ultra-pasteurized milk, facilitated production adaptations.

Market volume stabilized near 250 thousand tons in 2021, as the state-owned cooperative Conaprole maintained its dominant position, capturing 71% of domestic milk, and external demand from China influenced global dairy trade. The following year, however, saw a contraction to 232 thousand tons. The exit of the international player Olam from the Uruguayan market reduced milk intake for processing, and the inauguration of Conaprole's new nutritional milk powder plant shifted production focus within the sector.

In 2023, the market rebounded to 257 thousand tons. The implementation of the Organic Law for setting a minimum milk price, established at USD 0.42 per liter, provided cost certainty for producers and encouraged milk supply. Simultaneously, new MERCOSUR technical resolutions for milk powder and cream powder introduced updated identity and quality requirements, aligning the concentrated milk segment with regional standards.

Production concentrated milk and cream in Uruguay

In kind, 2017-2020, t

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

Uruguay's production of concentrated milk and cream has grown for the third year in a row. In 2020, the country produced 151.3 tonnes, marking a moderate increase of 7.7% compared to 2019. Looking at the period from 2017 to 2020, production rose by 18.6%, which translates to an average annual growth rate of 5.9%.

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

Exports concentrated milk and cream from Uruguay

Exports in kind, kg

In 2020, Uruguay exported 36 kg of concentrated milk and cream, a decrease of 45.7% from the previous year.

Annual dynamics of product's exports from Uruguay in kind, 2017-2020, kg

From 2017 to 2020, the United Kingdom was the sole export partner for concentrated milk and cream, accounting for 100.0% of all shipments.

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 concentrated milk and cream in 2020 were valued at 0.1 thousand US dollars, showing a sharp decline of 48.3% compared to 2019.

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

Between 2017 and 2020, Uruguay's exports in value terms were entirely dependent on the United Kingdom, which represented 100.0% of the total.

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

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

Imports concentrated milk and cream to Uruguay

Imports in kind, kg

Uruguay's imports of concentrated milk and cream have increased for the second consecutive year. In 2020, imports reached 96 592 kg, a dramatic rise of 49.0% from 2019. Over the 2017-2020 period, imports grew by 14%, with a compound annual growth rate of 4.5%. The lowest import volume was recorded in 2018 at 60 029 kg, which also saw the largest decline of 29.1%.

Annual dynamics of product's imports to Uruguay in kind, 2017-2020, kg

From 2017 to 2020, Brazil was the main source for Uruguay's imports of concentrated milk and cream, making up 80.6% of the total. Other markets contributed smaller shares, forming a long tail of partners.

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

Uruguay's imports of concentrated milk and cream have risen for the second year in a row. In 2020, imports were valued at 188.3 thousand US dollars, up 43.8% from the previous year. Between 2017 and 2020, imports increased by 3.7%, equivalent to an average annual rate of 1.2%. The lowest value was in 2018 at 119.4 thousand US dollars, which also experienced the largest drop of 34.2%.

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

Throughout 2017-2020, Brazil dominated Uruguay's imports in value terms, holding an 81.4% share of the total. The remaining portion was distributed among other markets.

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

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