MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America: Southern Cone                               

MADISON, WI. October 13, 2016 (REPORT 41)                        

SOUTH AMERICA: SOUTHERN CONE
INFORMATION GATHERED 10/3/2016 - 10/14/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):  
In South America, whole milk powder pricing is shifting down, in line 
with the recent downward trend at the GDT. WMP is one of the main dry 
ingredients produced, exported and consumed in South America. The 
demand in Brazil is very strong. Most WMP exports in the Southern 
Cone are moving to Brazil. Production is active as there is enough 
milk available to dry in Argentina and Uruguay. In addition, Paraguay 
is starting to increase WMP manufacturing in order to export. 
Inventories are mixed throughout the continent. The Southern Common 
Market or Mercosur is an economic and commercial bloc of countries in 
South America composed by Argentina, Brazil, Paraguay, Uruguay and 
Venezuela. Chile, Bolivia, Colombia, Ecuador and Peru are associate 
countries. The main purpose of Mercosur is to promote free trading 
within the bloc. During 2015, Mercosur decided to extend the Common 
External Tariff (CET) to 28% for some dairy products, including whole 
milk powder. The increase of the CET will remain until December 31, 
2023. This tariff applies to WMP imports coming from countries 
outside Mercosur. According to the Ministry of Industry, Trade and 
Services (MDIC), Brazil WMP imports from January to September 2016 
totaled 97,882 MT, up 143% from the same period in 2015. From this 
total, imports from Uruguay and Argentina represented 69% and 26%, 
respectively. 
             
26% BUTTERFAT:                         2,750 - 3,050   


930CT Angel.Teran@ams.usda.gov (608)557-7011
USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News 
website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home