Dairy forecasts for 2024: More exports, less internal consumption and production recovery in the second half of the year

Published 2024년 1월 8일

Tridge summary

The Argentine dairy industry is optimistic about the potential for increased external sales in 2024 due to the elimination of export duties and a more attractive exchange rate. However, the sector is also expected to face continued challenges from a drop in production, poor economic results, and the disconnection between costs and prices. Dairy producers and companies are wary of the difficult conditions they will face in the first half of the year and the ongoing effects of the adverse 2023.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

With zero withholdings and a more attractive dollar, the sector hopes to increase its external sales and compensate for the lower local demand due to the increase in prices. In the midst of the Copernican change of economic rules that Javier Milei's government seeks to implement since the beginning of his government , the Argentine dairy began 2024 with an a priori favorable perspective in the medium and long term. References in the dairy industry consulted by Infobae agreed that there may be light at the end of the tunnel after the rearrangement of relative prices. But - they warn - at least in the first half of the year, the sector will “pay the bills” for a 2023 marked by the consequences of the drought and the distortions of all the economic variables that affected all elements of the dairy chain. These distortions had to do not only with the special exchange rates for soybeans and corn that made animal production, including dairy, more expensive, but also with export duties ...

Source: Defrentealcampo