Milk market in Uruguay

Earlier Report Observations

Between 2018 and 2020, Uruguay's milk market volume gradually increased from 2 069 thousand tons to 2 117 thousand tons. This growth occurred within a sector strongly oriented toward exports, with around 60% of milk destined for foreign markets.

In 2021 and 2022, the market continued to expand in value terms, reaching 8 295 million US dollars in 2022 despite a slight contraction in physical volume in 2022. This value growth was driven by firm international dairy prices, which remained above US$4 000 per ton. The period also saw structural changes, including the exit of the company Olam and a concentration of production in larger establishments.

In 2023, market volume fell to 2 010 thousand tons, and value dropped to 7 060 million US dollars. The decline was primarily caused by excessive rainfall, which deteriorated pasture quality and milk output. Concurrently, export patterns shifted, with China's share of Uruguayan dairy exports falling from 10% to 3%, while shipments to Brazil grew by 60%.

Production milk in Uruguay

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Uruguay produced 2,271 thousand tons of milk, representing a modest increase of 1.7% compared to the previous year. Over the period from 2017 to 2020, milk production grew by 7.6%, which translates to an average annual growth rate of 2.5%. The largest annual increase occurred in 2018, at 6.1%, while the largest decline was recorded in 2019, at 0.2%.

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

In value, 2017-2020, M $ US

Uruguay's milk production value increased for the second consecutive year. In 2020, the output was valued at 6,580 million US dollars, reflecting a moderate gain of 4.6% from the previous year. Between 2017 and 2020, production value rose by 6.7%, equating to an annualized growth rate of 2.2%. The lowest value was recorded in 2018 at 6,110 million US dollars, which also saw the largest decline of 0.9%.

Annual dynamics of production in Uruguay in value, 2017-2020, M $ US

Exports milk from Uruguay

Exports in kind, K t

Milk exports from Uruguay declined for the second consecutive year. In 2020, exports amounted to 162.4 thousand tons, remaining virtually unchanged compared to 2019. Over the period from 2017 to 2020, exports increased by 22.3%, with a compound annual growth rate of 6.9%. The peak was reached in 2018 at 170.6 thousand tons, which also saw the largest increase of 28.5%. The largest decline occurred in 2019, at 4.4%.

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

From 2017 to 2020, the main destinations for Uruguay's milk exports in volume terms were Algeria, Brazil, and China. Algeria accounted for 38.4% of exports, Brazil for 25.6%, and China for 7.6%. Together, these three countries absorbed 71.6% of Uruguay's total milk 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, M $ US

In 2020, Uruguay exported 470.6 million US dollars worth of milk, marking a slight advance of 2.4% compared to the previous year. Between 2017 and 2020, export value increased by 21.3%, equating to an annualized growth rate of 6.6%. The largest increase was recorded in 2018 at 20.0%, while the largest decline occurred in 2019 at 1.4%.

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

From 2017 to 2020, the leading destinations for Uruguay's milk exports in value terms were Algeria, Brazil, and China. Algeria represented 40.5% of export value, Brazil 27.3%, and China 7.3%. Collectively, these three markets accounted for 75.2% 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 milk to Uruguay

Imports in kind, K t

Milk imports into Uruguay increased for the third consecutive year. In 2020, imports amounted to 8.6 thousand tons, marking a significant uptick of 264.6% compared to the previous year. Between 2017 and 2020, imports surged by 460.9%, equating to an annualized growth rate of 77.7%.

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

From 2017 to 2020, the main sources for Uruguay's milk imports in volume terms were Argentina, Brazil, and Portugal. Argentina accounted for 54.0% of imports, Brazil for 22.2%, and Portugal for 9.2%. Together, these three countries supplied 85.5% 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, M $ US

The data reveals irregular changes, indicating a volatile market environment. In 2020, milk imports into Uruguay amounted to 7.2 million US dollars, marking a steep advance of 122.3% from the previous year. The lowest value was recorded in 2018 at 2.3 million US dollars, which also saw the largest decline of 30.8%. From the low in 2018 to the high in 2020, import volumes varied 3.2 times.

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

Throughout 2017 to 2020, the key sources for Uruguay's milk imports in value terms were Argentina, Portugal, and Brazil. Argentina accounted for 40.0% of import value, Portugal for 20.3%, and Brazil for 13.8%. Together, these three directions represented 74.1% 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