Uruguay finds new markets for butter exported to Russia, including Brazil

Butter exports from Uruguay, which were exclusively destined for Russia in January and February and experienced a general decline in March following the outbreak of the Ukraine war, recovered in April, both in terms of exported values and volume.

According to data released by Uruguay’s National Milk Institute (Inale), in the fourth month of the year, butter exports totaled US$ 7,571,887, more than doubling the US$ 3,431,254 invoiced in March, the first month with no exports to Russia. April’s dollar exports were also higher than February’s (US$ 5.6 million), though they haven’t yet surpassed January’s sales, which totaled US$ 8.9 million, with only Russia purchasing US$ 6.3 million.

Product exports were also higher in April 2022 than last year’s same month. In 2021, in the fourth month of the year, foreign sales reached US$ 4 million in revenue.

Before the war in Ukraine, Russia’s importance in butter exports was significant to Uruguay, as it was the primary destination for the product. Following the invasion, there was skepticism among government officials and companies in the sector dominated by Conaprole. However, at least in April, exports showed greater diversification after an initial drop in March.

Destinations

According to the National Customs Directorate’s records, Brazil was the top buyer market in April, with US$ 2.1 million, followed by Egypt with nearly US$ 1.2 million. Bahrain and South Africa each with over US$ 800 thousand, and China with US$ 676 thousand.

Meanwhile, Chile and Saudi Arabia closed exports in April for approximately US$ 400,000 each, while Morocco and Iraq did so for approximately US$ 230,000 each.

During the first three months of the year, including March, Russia was the most important destination for Uruguayan exports of this product. According to Inale data, the Russian market accounted for 51% of exports during this period, although no products were exported in March. Egypt was the second most important market in the first three months of the year (11% of the total), followed by South Africa (7%).

In 2021, Russia was the destination for 52% of exports, followed by Brazil (10%), Georgia (8%), Bahrain (5%), and Egypt (4%).

More volume and better prices

In terms of volume, 1,360 tonnes of butter were exported in April, up from 658 tonnes in March and higher than the 1,156 tonnes exported in February. In January, 2,009 tons were exported.

In volume, sales abroad were also higher than in April 2021, when 1,002 tonnes were exported.

According to Inale, the increase in sales in April was accompanied by an increase in the average price paid per tonne. The average received for Uruguayan butter was US$ 5,566 per tonne, which has been increasing since January when an average of US$ 4,459 per tonne was recorded.

Source: Milk Point

To read the full original article, please go to: https://www.milkpoint.com.br/noticias-e-mercado/giro-noticias/uruguai-encontra-outros-destinos-para-manteiga-exportada-para-russia-brasil-entre-eles-230065/

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