Uruguay dairy exports fall 18% in January-February, but price rebound signals recovery

Uruguay’s dairy exports totaled $104 million in January and February, down 18% from the same period a year earlier, according to an Uruguay XXI foreign trade report. Looking at February alone, exports amounted to $52 million, a 28% year-on-year decline.

The sector’s performance was shaped by demand in its two main markets, the report said. Brazil remained the top destination with $35 million in purchases, though that was down 19% from a year earlier. Algeria ranked second with $34 million, falling 31% year on year. Together, the two markets account for a decisive share of the sector’s external sales, Uruguay XXI said.

Other destinations posted sharp growth off smaller bases. Saudi Arabia increased purchases by 280%, Mexico rose 38% and Mauritania gained 30% year on year, the report said. Combined, those five markets accounted for about 70% of Uruguay’s dairy exports in the first two months of the year.

Whole milk powder generated 68% of export revenue in the period, followed by butter at 12% and skim milk powder at 5%, according to the report.

Conaprole’s strategy: holding back sales

A deliberate sales decision also contributed to the decline. Conaprole Vice President Alejandro Perez Viazzi told La Lechera that the cooperative began moderating sales in October last year, when international dairy prices fell sharply. Because there is a lag between sales contracts and actual shipments, that pullback was reflected in export volumes in January and February, he said.

The strategy appears to be paying off. With international prices improving since the start of 2026, Conaprole is now in a position to sell at levels above those available in the final quarter of 2025.

Global prices rebound

A more concrete signal came this week from the Global Dairy Trade platform. Auction 399, the first in March, ended with a 5.7% increase, marking the indicator’s fifth consecutive gain and lifting the weighted-average dairy price by $960, the report said.

Whole milk powder averaged $3,863 per tonne at the auction, up 4.5% from the previous sale. The data is closely watched in Uruguay: the country’s average exported price for whole milk powder in February was $3,700 per tonne, meaning the market is now offering more favorable conditions than last month, the report said.

According to Datamar data, Uruguayan exports of whole milk powder (HS Code 0402.21.10) grew by 20.8% in January 2026 compared to the previous year.

The following chart highlights the historical monthly containerized volumes for these exports:

Milk Powder Exports | Uruguay | Jan 2022 – Jan 2026 | TEUs

Source: DataLiner (click here to request a demo)

The sustained rebound supports Conaprole’s decision not to clear inventories when prices were at their lowest and leaves the sector better positioned for a stronger second quarter, even as the weak first two months will weigh on the year’s export tally.

Sources: Ámbito – Uruguay

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