Uruguay’s whole milk powder prices surge by 15% driven by export demand

URUGUAY – In Uruguay, the dairy sector is experiencing a notable shift, with the price of whole milk powder (WMP) surging by 15%.

Over the past year, WMP prices have climbed by 15%, significantly outpacing the general dairy sector’s average increase of 10%. This sharp rise underscores the growing demand and strategic importance of WMP within both domestic and international markets.

Whole milk powder accounts for two-thirds of dairy exports by volume, about 68,500 out of 108,500 tons shipped this year.

As of June 22, placements of whole milk powder have yielded US$272 million out of the total US$400 million generated by the dairy sector, reflecting a yearly average price of US$3,969, which is US$500 more than in the first semester of 2024.

 The prices of all dairy products have risen from US$3,362 to US$3,703 per ton between June 2024 and June 2025, marking a 10% increase.

A key driver behind this price momentum is Uruguay’s strong export orientation. Nearly 70% of the country’s WMP production is destined for foreign markets, making it one of the most export-reliant dairy commodities in the nation.

This high export share not only reflects global appetite for Uruguayan dairy but also exposes the sector to international price dynamics and trade fluctuations.

The price uptick has been welcomed by producers, who see it as a reward for sustained quality and efficiency improvements. However, it also raises questions about affordability and supply for local consumers and processors.

As Uruguay continues to position itself as a competitive player in global dairy trade, the performance of WMP will remain a bellwether for the sector’s economic health and resilience.

With international demand showing no signs of slowing, and domestic production adapting to meet these pressures, Uruguay’s whole milk powder market appears poised for continued growth—albeit with the challenges that come from balancing global opportunity with local needs.

Uruguay’s Dairy Industry

At the core of Uruguay’s dairy sector lies its considerable dairy cattle population, numbering approximately 720,000 cows.

This substantial population guarantees a steady supply of raw milk, essential for producing a wide array of dairy products.

Uruguay stands as a net exporter of dairy products, with export revenues reaching approximately USD 850 million in 2024, surpassing previous years’ figures.

Key export markets include Brazil, Algeria, Russia, and China, predominantly for milk powder. Imports of dairy products remain minimal, largely serving niche market segments.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE