Dairy: Rabobank report warns of further drop in domestic production of Argentina

Cow Milk

Dairy

Argentina

Published Jun 8, 2023

Tridge summary

The weather continues to take its toll on national milk production. According to a report by Rabobank on activity worldwide, reproduced by the Observatory of the Argentine Dairy Chain (Ocla), the outlook for Argentina shows a possible drop in the second quarter. “Production is expected to contract further in the second quarter of 2023.

Original content

Milk production was almost unchanged during the first quarter of 2023, with a slight decrease of 0.2% in volume,” warns the report of the european bank. However, the outlook goes further by arguing that ongoing dry weather in some regions, high production costs and limited forage availability will accelerate production declines during the second and third quarters of 2023. According to data from the Ocla, cost of production stood at $78/liter in April 2023, compared to a farm-gate milk price of $89/liter, a slight improvement compared to December margin levels; however, profitability will decrease from May due to high prices and lower availability of complementary feed and forage. A challenging winter is coming. Local sources indicate that fodder stocks were reduced during the recent drought in Q4 2022 and Q1 2023 to around half of what would be standard for this time of year. As the colder mid-year winter months approach, dairy farmers will face challenges in maintaining ...

Source: Laradio1029