Milk powder with fat content of ≤1.5% market in South America

Earlier Report Observations

The introduction of new regulatory standards in 2018, including MERCOSUR labeling rules for milk powder and Brazilian Normative Instructions setting minimum quality parameters for raw milk, provided a clearer framework for production. These measures likely supported a sustained increase in domestic output, which grew from 77.7 thousand tons in 2018 to a peak of 99.1 thousand tons by 2022.

Over the full period from 2018 to 2023, the total market volume for low-fat milk powder in South America contracted by over 37%, falling from 207.1 thousand tons to 129.7 thousand tons. This decline was driven primarily by a sharp reduction in imports, which dropped from 170.8 thousand tons to 92.0 thousand tons, despite fluctuating export levels.

A notable turnaround occurred in 2023 when domestic production fell sharply to 65.2 thousand tons, its lowest point in the period. This drop contributed to the continued market contraction, even as imports showed a slight recovery from the previous year's low.

Production milk powder with fat content of ≤1.5% in South America

In kind, 2017-2020, t

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

South America's production of milk powder with a fat content of ≤1.5% has increased for the second consecutive year. In 2020, the region produced 88 788 tonnes, marking a 6.3% rise compared to 2019. Looking at the broader period from 2017 to 2020, production decreased by 5.9%, with an average annual decline of 2.0%. The lowest production level was recorded in 2018 at 77 703 tonnes, which also saw the largest decline of 17.7%. In contrast, 2019 experienced the most significant increase, with production growing by 7.5%.

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

Exports milk powder with fat content of ≤1.5% from South America

Exports in kind, K t

Following two years of growth, South America's exports of milk powder with a fat content of ≤1.5% declined in 2020. Exports totaled 32.9 thousand tonnes, representing a 26.8% drop from the previous year. Over the period from 2017 to 2020, exports decreased by 19.1%, equivalent to an annualized decline of 6.8%. The peak export volume was recorded in 2019 at 45.0 thousand tonnes, which also saw the largest increase of 8.7%.

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

From 2017 to 2020, South America's exports of milk powder with a fat content of ≤1.5% were distributed across a diverse range of partner countries. Algeria accounted for 12.9% of exports, Russia for 6.8%, and China for 6.1%. Together, these three countries represented just 25.8% of total export flows.

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, M $ US

South America's exports of milk powder with a fat content of ≤1.5% have increased in value for the second consecutive year. In 2020, the region exported 112.3 million US dollars' worth of this product, showing a moderate rise of 3.1% compared to 2019. Over the period from 2017 to 2020, export value grew by 15.7%, with an average annual increase of 5.0%. The lowest value was recorded in 2018 at 85.1 million US dollars, which also saw the largest decline of 12.2%. In contrast, 2019 experienced the most significant increase, with export value rising by 27.9%.

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

Between 2017 and 2020, South America's exports of milk powder with a fat content of ≤1.5% in value terms were spread across numerous countries. Algeria accounted for 12.6% of export value, Russia for 6.2%, and China for 5.7%. Collectively, these three countries represented only 24.5% of total export flows.

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 powder with fat content of ≤1.5% to South America

Imports in kind, K t

In 2020, South America's imports of milk powder with a fat content of ≤1.5% reached 99.6 thousand tonnes, reflecting a modest increase of 7.8% from the previous year. However, over the period from 2017 to 2020, imports decreased by 16.3%, equivalent to an annualized decline of 5.8%. The lowest import volume was recorded in 2019 at 92.3 thousand tonnes, which also saw the largest decline of 46.0%. In contrast, the peak import volume occurred in 2018 at 170.8 thousand tonnes, which experienced the largest increase of 43.6%.

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

From 2017 to 2020, the United States, Mexico, and New Zealand were the key partners for South America's imports of milk powder with a fat content of ≤1.5% in volume terms. The United States accounted for 38.4% of imports, Mexico for 19.8%, and New Zealand for 5.3%. Together, these three countries represented 63.5% of total import flows.

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, M $ US

In 2020, South America's imports of milk powder with a fat content of ≤1.5% amounted to 268.4 million US dollars, representing a 22.7% increase year-over-year. Over the period from 2017 to 2020, import value decreased by 4.1%, with an average annual decline of 1.4%. The lowest value was recorded in 2019 at 218.9 million US dollars, which also saw the largest decline of 35.9%. In contrast, the peak value occurred in 2018 at 341.6 million US dollars.

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

Between 2017 and 2020, the United States, Mexico, and New Zealand consistently held leading positions in South America's import structure for milk powder with a fat content of ≤1.5% in value terms. The United States accounted for 37.4% of import value, Mexico for 16.3%, and New Zealand for 6.4%. Together, these three countries represented 60.1% of total import flows.

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

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