Uruguay’s dairy sector recorded modest growth during the first half of 2026, with export earnings increasing by 2% year-on-year to US$441 million FOB. The growth was primarily driven by higher export volumes of whole milk powder (WMP), which helped offset declining international dairy prices.
According to data released by Uruguay’s National Milk Institute (Inale) and the National Customs Directorate, whole milk powder continued to dominate the country’s dairy export basket and remained the key contributor to overall export performance.
Dairy Export Performance at a Glance (January–June 2026)
| Product | Volume Change | Revenue Change | Average Price Change |
|---|---|---|---|
| Whole Milk Powder | +15% | +5% | -8% |
| Skim Milk Powder | -9% | -4% | +5% |
| Cheese | -9% | -8% | +1% |
| Butter | +16% | +2% | -12% |
| Total Dairy Exports | — | +2% | — |
Whole Milk Powder Remains Export Engine
Whole milk powder continued to underpin Uruguay’s dairy export performance during the first six months of 2026.
- Export volume increased by 15% to 82,027 tonnes.
- Export revenue rose 5% to US$299 million.
- Average export price declined 8% to US$3,718 per tonne.
Despite weaker international prices, increased shipments enabled exporters to maintain revenue growth. Whole milk powder alone accounted for nearly 68% of Uruguay’s total dairy export earnings during the period, underscoring its strategic importance to the country’s dairy industry.
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Skim Milk Powder Faces Volume Decline
Skim milk powder exports experienced weaker performance compared to whole milk powder.
- Export volume declined 9% to 7,392 tonnes.
- Revenue fell 4% to US$24 million.
- Average export price improved by 5% to US$3,360 per tonne.
Higher prices provided some support, but lower demand and shipment volumes weighed on overall export earnings.
Cheese Exports Continue to Slow
Uruguay’s cheese exports also registered a decline during the first half of the year.
- Export volume fell 9% to 8,301 tonnes.
- Revenue decreased 8% to US$41 million.
- Average export price remained relatively stable at US$5,251 per tonne, up 1% year-on-year.
The figures suggest softer international demand rather than significant price-related pressures.
Butter Records Highest Volume Growth
Butter emerged as the fastest-growing product in terms of export volumes.
- Export volume increased by 16% to 6,148 tonnes.
- Revenue rose 2% to US$35 million.
- Average export price declined 12% to US$5,698 per tonne.
Although exporters shipped substantially larger quantities, declining global butter prices limited revenue gains.
Industry Analysis
The first-half results highlight an important trend in global dairy trade: volume growth has become increasingly important in sustaining export revenues amid softer international commodity prices.
Uruguay’s dairy exporters have successfully leveraged higher shipment volumes to offset price corrections in major dairy commodities, particularly whole milk powder and butter. However, continued pressure on international dairy prices could pose challenges in the coming months.
Whole milk powder remains the cornerstone of Uruguay’s dairy export strategy, and its performance will largely determine the sector’s outlook for the remainder of 2026. Any improvement in global dairy commodity prices could significantly enhance export earnings, while prolonged price weakness may require exporters to focus further on efficiency and market diversification.
Outlook
Uruguay’s dairy industry enters the second half of 2026 on relatively stable footing. The combination of rising export volumes and resilient international demand has allowed the sector to maintain positive growth despite an unfavorable pricing environment.
Going forward, global milk powder price trends, demand from key importing markets, and logistics competitiveness will be critical factors influencing Uruguay’s dairy export performance. For now, whole milk powder continues to serve as the industry’s most reliable growth driver, helping the sector navigate a challenging global dairy market.
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