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The Latin America dairy market is being driven by the growing milk production in the region. The milk production in South America increased slightly by 1.1% in 2018, as compared to the previous year to attain 64 million tonnes. The milk output in the region is expected to witness an increase in the forecast period of 2022-2027 too with the maximum increase in output expected to occur in Argentina, Colombia, Chile, and Uruguay.
Argentina, a major dairy producer saw a significant decline in its milk production in 2016 due to the adverse weather conditions caused by the 2016 El Niño. Its milk output is recovering with slight growth of 2% in 2017 and 2018, as compared to the previous years. In the coming years, the production of milk is expected to increase annually by 1.3%. While the cow herd size has been decreasing since 2012, it is being balanced by the higher yields per cow. Argentina dairy exports witnessed a 7% increase in 2018, from 2017, to reach 10.8 million tons despite the drought conditions in the early 2018.
Brazil is the leading market for dairy in the Latin America region, and the demand and consumption is expected to remain high in the coming years. The consumers in the Brazil dairy market are more likely to check for the nutritional content and taste of the dairy product before purchasing over other dairy markets in the region like Argentina. They are also more conscious about the sugar, fat and protein content in the dairy products. While the demand for dairy products in the country is high, the dairy market growth is expected to be slow in the forecast period. The Brazil market for dairy was affected by the trucker’s strike in May 2018, which led to a disruption in the feed delivery and collection of milk. Thus, this resulted in the decrease in its milk output in 2018 by 1.1%, as compared to 2017, attaining 34.9 million tonnes.
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SanCor Cooperativas Unidas Limitada, Mastellone Hermanos SA, Nestle S.A., Lactalis Group, Alpina SA, Lacteos Betania SA are the key players in the Latin America dairy market as identified by EMR. The report by EMR takes a detailed look into their market share, capacity, and latest developments like expansions in capacity, plant turnarounds, and mergers and expansions.
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