Dairy farms analysis in Argentina

According to the Observatory of the Milk Chain (OCLA), the incidence of those dairy farms that have a production lower than 2K liters/day is decreasing. In 2018 those farms represented about 50% of the total number and produced nearly 16.7% of the country's milk supply. A year later such a number dropped to 48.6% and their production incidence to 15% of the total. Measured until November 2020, this segment of family farms account for 13.5% of production.

Argentina has about 500 dairy farms that produce more than 10K liters/day of milk. In fact, the number is closer to 20K since their production average in November 2020 was 18,6K liters/day. They represent 5.1% of the total dairy farms and contribute 27.2% of the total production.

On the contrary, Argentina has almost 4.6K dairy farms of less than 2K liters/day and which is 47.1% of the total dairy farms, representing 13.5% of the national production

While the smallest dairy farms are losing ground in the business, the largest have gained it since 2018. This segment has grown 1.2% in the number of dairy farms and 5.5% in production, in just two years. In other words, the largest dairy farms are becoming more and more productive. The smallest ones, up to 2K liters, not only fall but they produce less and less milk.

The productive size of the average dairy, according to the OCLA analysis, was about 3.3K liters/day of milk in November 2020, which was 7.2% more than the previous year.