Sharp Decline in Milk Consumption in Argentina Amid Soaring Prices and Economic Challenges
Source: The DairyNews
In Argentina, milk consumption has experienced a significant decline in the first quarter of the year, with statistics showing a 13.7% drop in equivalent liters of milk. This decline is attributed to the skyrocketing prices witnessed over recent months. A year-on-year comparison from April 2024 versus April 2023 reveals a decrease of 12.0% in product volume and 9.1% in equivalent liters.
Overall, the cumulative figures for the first quarter highlight a 17.2% drop in product volume and a 13.7% reduction in equivalent liters of milk, with a daily average decrease of 14.4%.
Despite this general downturn, April sales saw a slight recovery, with a monthly increase of 3.5% in liters of milk equivalent and a 6.9% rise in the daily average, though the volume was 3.7% lower than the previous month. A detailed analysis by product group indicates a substantial decline across all categories, except for cheeses, which saw a lesser decline of 7.8% in equivalent liters. High-value dairy products such as very soft pasta cheeses, grated cheeses, flavored milks, yogurts, custards, and desserts experienced significant drops due to price hikes and a delay in the purchasing power recovery of the population segment that primarily consumes these products.
It's important to note that Resolution 230, which captures a majority of total sales, excludes certain transactions that might exhibit different trends from those reported. Additionally, the current economic climate, characterized by a sharp deterioration in real income, has led to an increase in "informal sales," which are not captured by official statistics, and a rise in the consumption of cheaper dairy substitutes like striped, dairy drinks, margarines, and similar products.
The Dairy Balance, which includes production values, stocks, imports, and exports, calculates consumption by difference. For the first quarter of 2024, it recorded a 16.9% drop in total consumption and an 18.3% decrease in per capita consumption, measured in equivalent liters of milk and adjusted for the number of days in each quarter.
However, there is a silver lining as the rapid decline in consumption that began at the end of the previous year appears to be slowing. Fluid milks and cheeses, in particular, showed volume improvements in the last available month (+4.9% and +8.1%, respectively).
Despite this general downturn, April sales saw a slight recovery, with a monthly increase of 3.5% in liters of milk equivalent and a 6.9% rise in the daily average, though the volume was 3.7% lower than the previous month. A detailed analysis by product group indicates a substantial decline across all categories, except for cheeses, which saw a lesser decline of 7.8% in equivalent liters. High-value dairy products such as very soft pasta cheeses, grated cheeses, flavored milks, yogurts, custards, and desserts experienced significant drops due to price hikes and a delay in the purchasing power recovery of the population segment that primarily consumes these products.
It's important to note that Resolution 230, which captures a majority of total sales, excludes certain transactions that might exhibit different trends from those reported. Additionally, the current economic climate, characterized by a sharp deterioration in real income, has led to an increase in "informal sales," which are not captured by official statistics, and a rise in the consumption of cheaper dairy substitutes like striped, dairy drinks, margarines, and similar products.
The Dairy Balance, which includes production values, stocks, imports, and exports, calculates consumption by difference. For the first quarter of 2024, it recorded a 16.9% drop in total consumption and an 18.3% decrease in per capita consumption, measured in equivalent liters of milk and adjusted for the number of days in each quarter.
However, there is a silver lining as the rapid decline in consumption that began at the end of the previous year appears to be slowing. Fluid milks and cheeses, in particular, showed volume improvements in the last available month (+4.9% and +8.1%, respectively).
