MD_DA130 South America Dairy Market Overview Report 19 - Released on May 7, 2020 Farm milk output is slightly improving in the main dairy basins of South America. Year to date, milk intakes are above levels from the previous year. Dry weather, low autumn temperatures and good quality forage have contributed to better milk cows' yields across Argentina, Uruguay, and some states of Brazil. In terms of milk components, the percentage of fat and protein are at high seasonal levels. Milk transportation has had some delays in shipping as some truckers choose to stay home during the COVID-19 pandemic. Nevertheless, most dairy product processors are receiving more than enough raw milk volumes to handle. So far, the impact of coronavirus on milk collection on farms, processing in factories and distribution of dairy products has been minimal. In other words, the dairy market supply chain continues operating without major issues. Even so, the governments of Argentina, Uruguay, Chile and Brazil have issued aid programs to mitigate the economic impact of COVID- 19 on the dairy industry. Since quarantine protocols were implemented across the continent, the demand for fluid milk, particularly UHT milk, has been very strong at the retail level. Some contacts say that people are maximizing their time at the supermarket by buying large volumes of UHT milk on less frequent visits. On the other hand, with the food service and hospitality sectors practically closed, the volume of sales of cheese, yogurt, and milk caramel has decreased sharply. Due to lower demand for cheese, some manufacturers have been forced to reroute more milk volumes into dryers. Information for the period April 27 - May 8, 2020, issued biweekly Published by: Dairy Market News - Madison, WI ANGEL TERAN-RAMOS, 6084228593 Email: angel.teran@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