Milk and cream market in South America

Earlier Report Observations

The South American market for not concentrated, not sweetened milk and cream demonstrated steady expansion from 2018 to 2022, with production rising from 69 877 K t to 75 320 K t. Market size followed a similar upward trajectory over these years, as import and export volumes remained relatively low and had minimal impact on total availability.

Production growth continued in 2023, reaching 75 553 K t. This was partly driven by structural changes within the region's dairy sector, notably in Brazil, where the industry saw a pronounced concentration of output into larger-scale farms. This consolidation improved operational efficiency and supported overall volume. Concurrently, the market adapted to evolving consumer preferences, with manufacturers increasingly developing healthier, functional dairy products and sustainable packaging. Into 2024, government measures to control milk imports during seasonal shortages aimed to stabilize conditions for domestic producers, while advancements in genetics and stable input costs further supported the sector's foundation.

Production milk and cream in South America

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

South America's milk and cream production has increased for the third consecutive year. In 2020, the region produced 73 520 K t of milk and cream, marking a year-over-year gain of 3.3%. Between 2017 and 2020, production grew by 7.2%, which translates to an annualized growth rate of 2.3%.

Annual dynamics of production in South America in kind, 2017-2020, K t

In value, 2017-2020, B $ US

South America's milk and cream production has risen for the second consecutive year. In 2020, the output was valued at 106.1 B $ US, representing a significant increase of 18.4% compared to the previous year. From 2017 to 2020, production increased by 25.9%, with a compound annual growth rate (CAGR) of 8.0%. The lowest value was recorded in 2018 at 81.1 B $ US, which also saw the largest decline of 3.8% during this period.

Annual dynamics of production in South America in value, 2017-2020, B $ US

Exports milk and cream from South America

Exports in kind, t

South America's volume of milk and cream exports has declined for the third consecutive year. In 2020, the region exported 16 891 t of milk and cream, reflecting a moderate decrease of 7.7% compared to the previous year. Over the period from 2017 to 2020, exports fell by 31.2%, with a compound annual growth rate (CAGR) of -11.7%.

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

From 2017 to 2020, milk and cream exports were distributed across a wide range of partner countries. The Philippines accounted for 30.1% of exports in kind, China for 8.6%, and the United Arab Emirates for 5.3%. Together, these three countries represented just 44.0% of total export flows, indicating a diversified market structure.

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

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

Exports in value, K $ US

The value of milk and cream exports from South America has increased for the second consecutive year. In 2020, exports amounted to 24 378 K $ US, showing an uptick of 5.7% compared to the previous year. However, between 2017 and 2020, exports decreased by 19.2%, equating to an annualized decline of 6.9%. The lowest value was recorded in 2018 at 22 891 K $ US, which also experienced the largest decline of 24.2% during this period.

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

During 2017–2020, the Philippines was the largest buyer of milk and cream from South America in value terms, accounting for 28.4% of exports. The United Arab Emirates followed with 12.6%, and China with 4.8%. Together, these three countries formed the largest group of buyers, but their combined contribution was limited to 45.9% of total export value, reflecting a diversified country structure.

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

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

Imports milk and cream to South America

Imports in kind, t

The data shows irregular changes in milk and cream imports to South America, indicating a volatile market environment. Imports peaked in 2017 and reached their lowest point in 2018, with a 3.6-fold fluctuation between these years. In 2020, imports totaled 16 248 t, showing a gradual fall of 6.0% compared to the previous year. The minimum value was recorded in 2018 at 6 506 t, which saw the largest decline of 72.4%. In contrast, the largest increase occurred in 2019, with a rise of 165.8%.

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

Over the period 2017–2020, there was no single dominant market for milk and cream imports to South America. Nicaragua accounted for 21.6% of imports in kind, Spain for 16.7%, and Poland for 10.8%. Together, these three countries took only 49.1% of total imports, while many smaller partners each held modest individual shares.

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

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

Imports in value, K $ US

Foreign milk and cream supplies to South America have increased for the second consecutive year. In 2020, imports totaled 19 540 K $ US, amounting to a sudden uptick of 26.7% year-over-year. The minimum value was recorded in 2018 at 9 440 K $ US, which also experienced the largest decline of 52.6%. The largest increase occurred in 2019, with a rise of 63.4%.

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

During 2017–2020, imports in value terms of milk and cream to South America were allocated across a large number of markets. Nicaragua accounted for 19.5% of imports in value terms, Spain for 13.7%, and Poland for 8.1%. Together, these three countries jointly accounted for only 41.4% of total flows, highlighting a diversified import structure.

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

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