MD_DA130 South America Dairy Market Overview Report 1 - Released on January 7, 2021 Along with the new year, rain showers have returned to the main farm areas and dairy basins of South America, after several weeks of dryness. In general, these humid conditions have sustained the development of soybeans and corn throughout the Mercosur region. Meanwhile, some dairy farm operators have had to deal with sanitary measures due to muddy conditions. However, high summer temperatures continue to be the main factor in slowing down cow's milk production. No major transportation problems have been reported due to the rains. In terms of manufacturing, milk/cream volumes are below adequate to produce cheese, butter, yogurt, milk caramel and milk powder. Bottled and UHT milk production remain the priorities under this COVID-19 conjuncture. Retail sales for bottled milk/UHT are strong in the retail sector, but sluggish in the food service sector. The butterfat market is steadily firming as demands from ice cream/frozen desserts manufacturers and butter makers become seasonally stronger. Information for the period December 21, 2020 - January 8, 2021, 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