Global dairy markets saw mixed signals as Fonterra, a New Zealand-based global dairy cooperative, reported a dip in dairy prices during the latest auction. However, Conaprole, Uruguay’s largest dairy cooperative, based in Montevideo, remains confident, citing strong sales, low stock levels, and stable producer payments despite volatile global trends.
Amid recent fluctuations in the global dairy market, Fonterra, the New Zealand-based dairy giant, announced another drop in prices at the Global Dairy Trade auction. Whole milk powder prices fell by $84 USD, settling at $3,922 per ton, marking the first time prices have slipped below the $4,000 mark after four consecutive declines. Meanwhile, skimmed milk powder offered a silver lining, gaining $4 to reach $2,708 per ton.
Despite the downturn, Uruguay’s dairy sector is responding with stability. Conaprole—the nation’s leading dairy cooperative—has taken a confident stance. Alejandro Pérez Viazzi, Vice President of Conaprole, reassured producers, stating that the current pricing remains strong and that the cooperative is continuing to offer payment certainty and favorable trading conditions.
Conaprole’s outlook is buoyed by strong product sales, low inventory, and production levels exceeding seasonal averages. In June, the cooperative paid $0.44 per liter, a figure that not only supports Uruguayan dairy farmers’ purchasing power but also reflects resilience amid broader market volatility and tough exchange conditions for exporters.
Furthermore, Conaprole confirmed that 50% of a previously announced reliance will be paid to its members, reinforcing the cooperative’s commitment to economic stability for producers.
While global trends remain cautious, Uruguay’s approach through Conaprole signals optimism for short-term recovery and sustained support for the dairy farming community.
