Good and bad for milk production in Argentina

Published May 29, 2024

Tridge summary

The Global Dairy Trade's latest auction shows a positive trend with powdered milk prices experiencing their fourth consecutive increase, now at USD 3,408, a significant rise from USD 2,548 last year. Despite a slight decrease in total dairy product exports in April, they saw a 12.9% year-on-year increase in volume. However, a challenging first quarter marked by falling export values and milk production volumes by 14.5% has raised concerns about the profitability of dairy farming in Argentina. The industry faces challenges such as low purchasing power and issues with milk marketing, further complicated by four years of interventionism and severe climate conditions, necessitating urgent reforms to ensure sustainability and profitability.

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

Original content

The latest auction of the Global Dairy Trade, to some extent the reference point for international dairy prices, brought good news for activity. As for powdered milk, our main export product, it recorded the fourth consecutive increase, and is now trading at USD 3,408, far from the USD 2,548 in August of last year. But in addition, the values have returned to the prices of the first days of the current year, when a fall began that cast doubt on the profitability of activity worldwide during the first quarter. It is true, Argentina is not Uruguay, which locates 80% of its milk production outside borders and where the fate of the activity depends crucially on export values. Our country, with a larger population and equally broader organizational problems, sells a much smaller proportion of its milk production abroad, but at least this global trend takes away a justification for those who intend to pay depressed prices at the gate. The numbers indicate that last April, Argentine ...

Source: Infobae