Uruguay’s Dairy Exports Hit New Highs as Prices and Demand Surge

Uruguay’s dairy sector has reached a new milestone in 2025, with export earnings up 11% in the first half of the year, according to official data from the Instituto Nacional de la Leche (Inale).

Dairy exports brought in $428.5 million from January to June, making dairy the country’s fourth largest export after beef, cellulose, and soybeans.

Most of this growth came from whole milk powder, which made up 76% of the total export volume and earned $286.9 million, up 18% from last year. Butter also performed well, with export revenue rising 26% to $34.8 million.

However, exports of cheese and skimmed milk powder fell in both volume and value. Rising prices have fueled much of this success. In June 2025, whole milk powder sold for $4,137 per tonne, up 47% from December 2024.

Butter reached $6,839 per tonne, up 24% over the same period. These higher prices helped make up for lower sales in some products. Brazil and Algeria remain Uruguay’s top dairy buyers, together taking about two-thirds of exports.

Brazil leads in buying cheese and skimmed milk powder, while Algeria is the main buyer of whole milk powder. Russia is the top destination for Uruguayan butter. This wide mix of buyers helps protect Uruguay from sudden changes in any one market.

In 2024, Uruguay’s dairy exports totaled $853.9 million, slightly higher than the year before. The country’s 3,900 dairy farmers and processors ship products to over 60 countries.

While focusing on whole milk powder has brought steady growth, it also means Uruguay is exposed to price swings in that market. Recent trade disputes with Brazil show the risks of relying too much on a few products or buyers.

Uruguay’s dairy sector stands out for its ability to adapt and find new opportunities even as markets change. By keeping quality high and building strong trade relationships, Uruguay has shown that a small country can thrive in global trade.

This year’s results highlight the importance of smart strategy and resilience in a competitive world.