Dairy markets see historic price shifts and EU-Mercosur trade implications

In the global dairy market, skim milk powder prices have surpassed whole milk powder for the first time in the history of the GDT Pulse auction system. During the 116th auction, skim milk powder averaged US$ 3,653 per ton, a 1.9% increase, while whole milk powder prices fell by 1% to an average of US$ 3,590 per ton.

Separately, the potential EU-Mercosur trade agreement is expected to significantly impact the Argentine dairy sector. While the European Union produces approximately 14 times more milk than Argentina, the agreement includes gradual tariff reductions for cheeses and milk powder through 2036. These products will be subject to regional quotas, including 30,000 tons for cheese and 10,000 tons for milk powder, providing a transition period for Mercosur industries to adapt and potentially shift toward higher value-added exports.