Argentina has a record in dairy exports, but faces difficulties in the sector

Published Feb 1, 2023

Tridge summary

Argentina's dairy sector experienced a significant growth in exports in 2022, with a 4.1% increase in volume and 24.4% increase in value, accounting for 26% of the country's total milk production. The average export price per ton was a record-breaking US$ 4,059, with powdered milk and eite powder seeing the highest price increases. However, the sector is facing challenges such as drought, increased concentrate costs, and cash flow issues, which could affect future production and export volumes. The current international market price for whole milk powder is also not providing adequate purchasing power for producers.

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

Original content

The dairy sector in Argentina ended 2022 with an excellent performance in exports, registering an increase of 4.1% in volume and 24.4% in dollars, representing in equivalent liters of milk 26% of the total produced in the year, according to data from the National Institute of Statistics and Censuses (INDEC) published by the Argentine Observatory of the Milky Chain (OCLA). Data on dairy exports for the month of December, according to provisional information from INDEC, and despite the declines in recent months, indicate that they closed 2022 with notable growth, with more than 411 thousand tons (product volume +4.1%) per 1,670 million dollars (currency +24.4%). This represented approximately 3 billion liters of milk equivalent (+6.4%), which would reach 26% of the country's total production. As can be seen in the chart below, exports at the beginning of 2022 were considerably lower than in 2021, but it should be clarified that exports in January 2021 were very high, as they ...

Source: Milkpoint