Argentina: Hand in hand with powdered milk, dairy exports registered significant increases

A report by the Argentine Dairy Chain Observatory (OCLA) shows that dairy product exports, covering January-July 2022 with provisional data for August, saw a significant increase in value but a decrease in volume compared to the same period in the previous year. The exports were predominantly powdered milk (50.6%), followed by cheeses (22.8%), and other products like sweet milk, butter, and whey (17.5%). There was a notable inter-monthly increase in both volume and value for the period, but a decrease in August due to lower international prices and higher export duties. Despite the challenges, Argentine dairy exports are on track to reach record levels, with expectations to hit around 3,000 million liters of milk equivalent in 2022, potentially tying records from 2011 and 2013. However, the current international market price of around $3,600 to $3,800/ton for whole milk powder, due to export duties and a delayed exchange rate, results in purchasing power significantly below producer prices.