Argentina Faces Sharp Decline in Dairy Sales

This decline follows a period of slight recovery earlier in the year but highlights the broader economic challenges faced by consumers.

The reduction in sales volume compared to July 2024 is attributed to declining household incomes. Changes in consumption habits—referred to as "primarization"—see consumers opting for more basic and affordable options over higher value-added dairy products. This trend involves a shift away from flavored milks, yogurts, and desserts toward more basic items like fluid milk and less recognized cheese brands.

Specifically, fluid milk sales dipped by 2.4%, underscoring the severity of the consumption crisis. The market's sensitivity to price reductions has been evident, with some sectors managing to maintain sales through increased promotions and discounts.

The situation reflects Argentina's economic landscape's direct impact on the dairy industry, forcing consumers to adjust their dietary choices according to their constrained purchasing power.