Record Agricultural Production Triggers Alarms in the Dairy Industry

The temporary removal of export duties has led to a record liquidation in agriculture, with external sales declared in a single day reaching over $4.2 billion, hitting 60% of the government-set quota.

This boom has a direct impact on the dairy industry. Corn and soybean by-products, essential for bovine feeding, are becoming more expensive in the local market. Dairy producers are already assessing the impact of potential increases in feed costs in an already tight-margin environment.

While corn represents a relatively small portion of the final milk price, any increase can partly translate to sector costs, creating pressure. With producer prices lagging inflation and the industry striving to maintain export competitiveness, the rise in strategic inputs could escalate tensions. The Argentine dairy sector watches this scenario cautiously, anticipating decisions on the duration of tariff benefits and their market effects.