MD_DA130 South America Dairy Market Overview Report 1 - Released on January 6, 2022 Dairy production on the continent was mixed throughout 2021, but one consistency is being reported from South to North: increasing logistical costs, with an emphasis on growing feed prices, are expected to impact on-the-farm milk production near term. Recent reports for end-of-year milk production point to growth in Argentina, while other large South American producing countries, such as Brazil and Uruguay, continue to see declining output figures. Undoubtedly, economic uncertainties across the region due to pandemic impacts at the retail/consumer level and currency devaluations have left the dairy sector in choppy waters moving into 2022. Trade agreements, and disagreements alike, have export sellers seeing growth in some cases, such as a surge in Uruguay's shipment of whole milk powder into Southeast Asia. Whereas, the Algerian government's recent pushes to limit imports on milk powders, among other agricultural commodities, has negatively impacted Argentina's powder exports to one of their largest trading partners. Information for the period December 27, 2021 - January 7, 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