Santa Fe Dairy Producers Suffer 30% Loss in Milk Production Due to Drought

Severe Drought Hits Santa Fe Dairy Sector

Santa Fe, a key dairy-producing region in Argentina, has been grappling with a severe drought that has persisted for nearly three years. This prolonged lack of rainfall has drastically affected dairy producers in the San Cristóbal and Castellanos departments, with reports indicating losses of up to 30% in milk production.

Production and Economic Impacts

Santa Fe accounts for 25% of Argentina's milk production, with approximately 3,800 dairy farms operating in the region. These farms are typically pasture-based, which has made them particularly vulnerable to the ongoing drought. Consequently, productivity has been severely compromised, increasing the cost burden on producers even as favorable domestic prices for milk offer some relief.

Challenges and Measures

The drought has not only hampered alfalfa growth, a crucial and cost-effective feed, but also affected other crops. Some producers have resorted to purchasing essential feed from other regions like Córdoba, further adding to their costs. With limited rainfall regimes and increased temperatures, Santa Fe's dairy farmers face mounting pressures.

The current situation has sparked discussions at the Provincial Milk Board of Santa Fe, focusing on potential short-term relief through expected seasonal births in March and April. However, the lack of sufficient rainfall suggests that substantial improvements in milk yields remain unlikely until later in the year.

Economic and Policy Responses

Producers in Santa Fe have requested an extension of the Agricultural Emergency decree due at the end of the month, and further actions are being considered to have the affected regions declared as disaster zones. Although the domestic market offers high prices for milk due to a stable currency, international competitiveness is hindered by currency conversion challenges, adding another layer of complexity to the already strained sector.