Argentine Milk Production Sees Robust Recovery in Early 2025

Argentina's dairy industry is witnessing a substantial resurgence, with milk production increasing by 15.9% in March 2025 compared to the same month in the previous year. The Observatorio de la Cadena Láctea Argentina (OCLA) reported a production of approximately 816.4 million liters for March alone. This remarkable rise is a part of a broader quarterly growth trend, with the first quarter of 2025 showing an interannual increase of 9.7%, surpassing OCLA's initial growth forecast of 9.1%.

Notably, the usual seasonal decline seen from February to March was minimal, underscoring the sector's recovery strength. Traditionally, a 4-5% drop is expected, yet this year it was only 0.7%.

The OCLA projected a year-on-year increase of 5.7% in total liters and 6% in daily averages for 2025, benchmarks that are on track to be exceeded if the current trends continue. To match the production levels of 2023, an annual growth of 6.9% is needed, while achieving 2022 levels requires a 9.1% rise.

The recovery is further supported by the increased production of quality components such as butterfat and protein, which saw an 11.7% rise from the first quarter of last year, contributing to a better nutritional profile.

Looking ahead, favorable weather conditions and improved market prices suggest continued positive momentum into April, potentially making the first half of 2025 a record-setting period for recovery. Despite expectations of more modest growth in the second half of the year, the overall annual growth could reach between 5% and 7%, reclaiming ground lost during the past two years.