Monitor Relative Prices
Here we present a monthly basis the evolution of the price of milk to the producer, and the main inputs that affect the dairy industry in Argentina, Brazil, Chile and Uruguay. In this monitor regional follow the evolution of the relative prices of key inputs that affect the activity of dairy production in the region as it is the Corn (the thermometer features food that takes more than 50% of the direct costs), the Diesel (impacts minimally on a 15% on cost of production), the Us dollar (more than 70% of the inputs of the activity listed in dollars), the Soy (the value of which affects the protein source of the rodeo dairy and, in almost all cases, the payment of the rent of the land in production (for the chilean case we use Wheat in place of soy) and the price of milk. Then you will find a graphic with the Evolution of the Index of Costs compiled for ease of comparison, and also a comparison chart with the relative evolution of the producer prices by country. Finally a graph of input/output showing the pounds of corn that can be purchased with 1 lt of milk in each of the countries, as well as the current values of milk and corn to the producer.
We use the month of January 2023=1 as a starting point for the evolution of relative prices. Graphics importantly, the stability of costs of power for all but Argentina that with inflation and, finally, the correction made by the new administration desconfiguró the curve with the curve of price running up the costs for all the 2024 and 2025, although fading from may to 2025 (this is because the price of January/24 with 0,267 US$/l was very low). It is remarkable the balance uruguayan also outweigh the curve of the price of milk on the inputs. Analyzing the prices of July 2025 we observe that the chilean producer and brazilian perceive the best prices: 0,490 and 0,472 US$/l, respectively, followed closely by the uruguayan with 0,437 and argentine falling with 0,367 US$/lt. The evolution of relative prices argentine is tarnished by a scenario of high inflation, annual, although it has fallen significantly, remains high (36,6%), compared with Chile (4,3%), Brazil (5.2%), and Uruguay (4.5%) and which complicates the analysis.
In the following charts, we see a compilation of the data generating Index of Cost/Price and the Rate of milk Prices in us dollars. In the first (the evolution of domestic prices to costs related to the local value of the milk) we can observe that the argentine producers are the best evolution presented in the last few months, but in may was worsening stagnation in the price to the producer. Chile was the worst was coming, but improvement from march nivelándose with Brazil in the last few months, both with the economies of the more adjusted to produce milk. Uruguay has a strong turning an improved in recent months, leveling off to Argentina.
What makes the costos power, which improved in all cases, the producer with the best Corn/Milk at this time is the brazilian with 2,47 kg corn/liter of milk, followed by the argentine 2,20 kg/lt., the chilean settles with 2.02 kg/lt. and finally, the uruguayan with a 1.90 kg corn/lt is the ratio lowest in the region. The calculations correspond to JULY 2025, month that we have the price of milk to the producer in all cases.
The relative evolution of the local price in us dollar shows the parity between Argentina, Chile and Uruguay for the last 3 months while Brazil is difference showing a stagnant evolution in the same period.
