High inflation counters rising milk prices for Argentinian dairy farmer

By Chris McCullough It’s a real ‘topsy turvy’ world producing milk in Argentina at the moment as farmers battle high inflation rates, prolonged drought and a national downturn in demand for dairy foods. Since the latter half of 2023, dairy production in Argentina has plummeted, which has increased prices to farmers, but on the flipside the costs of raw materials have also increased to a level that is forcing some Argentine dairy farmers out of business. Reports suggest that milk production in Argentina in the first five months of 2024 was around 14% lower than the same period in 2023. The situation is quite serious, ultimately causing concern for the Argentine farmers, dairy processors and consumers alike, as well as those employed in the dairy sector. El Rancho farm, owned by Diego Baudrix, is located in Balcarce, in the Buenos Aires province, and has been in his family since the early 1800s. Baudrix started with just 25 Argentine Holstein cows back in 1964 milking them by hand, ...