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Argentina's Dairy Exports Decline Despite High Prices and Increased Production

Argentina 05.06.2025
Source: dairynews.today
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Despite increased milk production and favorable international prices, Argentina's dairy exports are facing a downward trend.
Argentina's Dairy Exports Decline Despite High Prices and Increased Production
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In the first four months of the year, Argentine dairy exports totaled 118,900 tons, marking a 6% decrease compared to the same period last year. In April, exports reached 27,150 tons, which is a 4% decline from March and a 6.6% decrease from April of the previous year.

This occurs despite an ongoing recovery in milk production, expected to strengthen in the coming months, partly due to the high rainfall levels experienced since spring. Export prices have also improved, with the price per ton in April reaching $4,119, 15% higher than the same month last year, according to the Argentine Agriculture Secretariat's control board. However, with internal consumption offering better returns and quicker payments than international markets, more products are being redirected to domestic demand.

The situation is further complicated by Argentina’s economic conditions, with a stagnant exchange rate near 1,000 pesos per dollar and inflation running at 2% to 3% monthly, resulting in inflation in dollar terms and making it challenging for export sectors to compete globally.

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