Argentina: Dairy sector is in crisis - CONINAGRO

Under the concept of "traffic light", CONINAGRO assigns one of the three colors that symbolize the state of each item: well-being (green), concern (yellow) or crisis (red). “The dairy sector was affected in January by thermal stress and in March by rain. Among other factors, this precipitated a decrease in sales per liter and this drop is partly offset by sales in the proximity segment (groceries and self-services), with informal sales," the institution indicates. "As for consumption, the itself is primarized. In other words, there is more demand for basic products (milk in cartons, cream cheese, bars and drinkable yogurt) and less value-added products (yogurts in pots, flavored milks, desserts, flans, spreadable cheeses, hard cheeses, etc.)”, with the consequent contraction in margins. Meanwhile, with regard to exports, "the estimate for 2022 indicates that 24% of total production would be destined for the foreign market, something similar to 2021." THE PROBLEM OF COSTS In this ...