Argentina's increasing dairy exports are a cause of worry for the Brazilian producers

Argentina had its domestic market hit hard by the second wave of covid-19 and measures of social isolation decreed by the government. In an attempt to cope up, the dairy industry started to sell its surplus to Brazil. In October 2020, the volume of dairy exported was 121.5% higher in comparison to the previous year reaching 14.4 thousand tons. The increased import volumes was a cause of worry for the Brazilian producers as the increase in imports coincided with the period of greatest national production. The prices which were already paid to the producers started to fall down in the market due to excess supply. Brazil is experiencing an increase in production costs, drought, falling prices along with an increased supply of dairy products in the domestic market. All this makes the producers and associations are concerned about the unfeasibility of national production.