Argentina: Threat to milk exports

Everything related to agriculture is going through a difficult stage in Argentina, but within the sector some have it a little worse than the rest. This is the case of milk production and its derived industries, which struggle in a market characterized by official interventionism and a fantasy exchange rate that ends up seriously pushing the business. The latest news is not the best. The international price of powdered milk is in free fall. The recent auction of the Global Dairy Trade (GDT), the world's leading dairy trading platform, marked a new setback for our main export product, to USD 2,548/t, the lowest average since June 2020 and USD 1,185. down from the September 2022 peak. As a consequence, Fonterra, the New Zealand cooperative group that dominates global trade, revised downward its forecast for the price it will pay for milk in 2023/24. Everyone looks at China and its economic crisis, and it is accused of being largely responsible for the bad moment for dairy products. ...