MD_DA130 South America Dairy Market Overview Report 35 - Released on September 1, 2022 Reports suggest milk production in the region is facing continued downward pressure. Farmers say some operational costs remain an issue, but in one important area, they are easing. Feed/grains have become more available, counteracting some of the recent and notable debilitating financial hurdles for producers. Reports from Argentina had been one of the few areas of the continent where milk output numbers were moving higher, year-over-year, but recent reports from the Southern Cone country are falling in line with those of Brazil and Uruguay in regards to output. As most corn has reached the silo in the region, questions arise as to what Brazilian and Argentinian crop farmers plan to plant this spring in the corn versus soybeans discussion. Chinese interests in beans continue to push some in the soybean direction, whereas corn is more expensive to plant, yet would have more domestic end usage potential for dairy farmers. Brazilian output expectations are even stronger than the current year's records, and expectations are for another year of record crop yields. Information for the period August 22 - September 2, 2022, issued biweekly Published by: Dairy Market News - Madison, WI ISRAEL WEBER, 608-422-8601 Email: israel.weber@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov