South America Set For Dairy Increase
NEW ZEALAND - The FAO and other specialists of the Dairy Industry predict that, by year 2027, world demand for dairy products will have increased 20% while the price of milk will maintain the same and South American countries will become the key players of the world market for supply of dairy products.Farm for Sale in Uruguay
Only 35 km from Mercedes and 300km from Montevideo this 739ha farm runs alongside the Black River giving plenty of water for irrigation Coneat=120. 60% of the soils are suitable for cropping. House for staff and attractive main home too.
Only 35 km from Mercedes and 300km from Montevideo this 739ha farm runs alongside the Black River giving plenty of water for irrigation Coneat=120. 60% of the soils are suitable for cropping. House for staff and attractive main home too.
So far, New Zealand and Australia have 60% of the world market, but who is going to supply the market in the future?
Northern hemisphere countries are not able to increase their production, so all eyes are on South America.
These countries, especially Argentina, Chile and Uruguay, have weather conditions that allow farmers to feed their cows on pasture and keep them outdoors all year round. Producing at low cost under pastoral conditions seems to be the way dairy farmers here will be able to supply the growing demand since grain and other supplementary feeds have become very expensive and are not likely to change.
International companies know about this and have been establishing connections with local ones, such as Sancor in Argentina, Soprole in Chile, Conaprole in Uruguay and Nestle in Brazil. Farms are being managed by business orientated people, following a similar trend as other countries such as New Zealand and USA.
Source: FarmNews.co.nz