Argentina's Dairy Industry: An In-Depth Overview

Production and Processing

Argentina is a key player in the global dairy market, achieving a record annual production of 11.6 billion liters of milk in 2025. This high output is sustained by a robust dairy cattle population of approximately 1.6 million animals. The country is particularly famous for its cheese production, with an annual output of around 500,000 metric tons. Additionally, Argentina produces 150,000 metric tons of milk powder and whey. Prominent companies like La Serenísima (Mastellone Hermanos S.A.), Saputo Inc., and Williner dominate the sector, with contributions from Tambos La Unión and Estancia La Nueva.

Exports and Imports

Annually, Argentina exports approximately 3.5 billion liters of dairy products. The EU-Mercosur trade deal is anticipated to enhance export opportunities, although challenges such as Germany's import halt due to foot-and-mouth disease concerns persist. Strong trade relationships with Algeria and increased export volumes demonstrate Argentina's export strength. From January to July 2026, dairy exports rose by 20.4% to $987 million, with exports reaching 1.835 billion liters in milk equivalent, approximately 29% of total production.

Significant Market Events

Recent developments include board changes at Saputo Inc. and a projected 7% decline in milk output for 2024. Despite lower prices and reduced demand, there was a 10% increase in milk production in October 2025. Financial challenges, including significant debt issues affecting a leading company in Santa Fe, remain a concern.

Innovation and Sustainability

Innovations such as cooperative models, "smart dairies," and the rise of organic dairy production are transforming the industry. Companies like Grupo Don Emilio are aligning with international sustainability standards, while Mastellone Hnos. has verified its carbon footprint under ISO 14064-1.

Cultural and Consumer Trends

The Banquete Típico cheese from Tandil has gained recognition, enhancing urban consumer interest. A new ice cream flavor of chocolate and almonds is also gaining popularity.

Regional Support and Market Conditions

The province of Tucumán has extended tax benefits for its dairy sector until 2035. Despite inflationary pressures, national dairy output increased by 12% in the first half of 2025. Federal investigations into SanCor executives and the reopening of borders to high-value genetic livestock from the US are significant developments.

Legal and Trade Concerns

The industry faces legal scrutiny with charges against former SanCor presidents and a Brazilian antidumping investigation concerning milk powder exports.

Product Innovations

Santa Rosa introduced 'Camembertino' to meet the demand for premium cheese options. The exploration of donkey milk production as a hypoallergenic alternative for children with food allergies is underway.

Trade Agreements and Market Challenges

Despite record exports and increased production, the domestic market faces challenges with decreased sales and consumption. Argentina has experienced declines in average export prices and volumes, with a 1.80% decrease to USD 3,596.06 per ton.

Specialty Cheese Projects

The production of a one-ton cheese in Villa María required 10,000 liters of specially selected and pasteurized Holando cow milk. A sheep milk cheese won a gold medal at the Expo Suipacha 2026, highlighting Argentina's achievements in specialty cheese.

Acquisitions and Growth

This marks MIYM's third acquisition in Argentina, following Lácteos Karina and Lácteos Aurora. Grupo Gloria's acquisition of Molfino comes amid the dairy industry's recovery from a contraction.

Technological Advancements

The Monzoni family has transformed their traditional dairy operations using a dry lot system, tripling their production potential. Nestlé is expanding powdered milk production in Argentina as part of its broader regional strategy.

Record Production and Exports

Argentinian dairy production and exports are reaching record levels, with approximately 30% of milk from farms with daily outputs exceeding 10,000 liters. A blind test of 15 parmesan cheese brands revealed La Serenísima from Argentina as the top choice.

New Joint Ventures

Danone and Arcor have established a new dairy joint venture in Argentina, combining their operations with Mastellone Hermanos under a jointly controlled structure.

Industry Collaboration

Argentina's dairy industry discussed a shared agenda at the sixth International Dairy Seminar in Rafaela, focusing on issues such as export strategy, milk pricing, informality, animal health, infrastructure, technology, and workforce development.

SanCor's Financial Struggles

Argentina's dairy workers' union ATILRA is dealing with the bankruptcy process of the former cooperative SanCor CUL. MIYM has acquired San Ignacio, expanding its presence in Argentina's domestic dairy market.

Robotic Dairy Expansion

Manfrey expands its robotic dairy operation in Córdoba, with its facility now housing about 268 cows, close to its planned capacity of 280.

Mozzarella Production

Argentina produced an estimated 108,000–110,000 tonnes of mozzarella in 2023, reflecting a 14-16% increase from 2019. The report highlights national cheese consumption of about 12kg per person each year.

Additional Insights

Argentina remains a major supplier, providing significant portions of gouda and milk powder imports. The price paid to milk producers trailed the value generated by the industry, with higher processing costs absorbing improvements in factory-gate values. Argentina remains Lucciano’s main operating base, with 102 shops in the country and 21 outlets abroad. From January to July 2026, same-store sales in Argentina increased 13.6% above inflation; including newly opened shops, sales grew 52%. The company’s Argentine facilities produce about 3.6 million kg of ice cream, 4 million ice lollies, and 5.7 million alfajores each year. Argentina’s BICE provided 67 billion pesos in credit to 440 producers, with dairy accounting for 35% of the funds. Argentina’s accumulated dairy production increased by 6%, while dairy exports rose by 19%. The price paid to milk producers reached 527 pesos per litre in July, up 11.5% from a year earlier, compared with inflation of 33.8%.

The Santa Fe-based La Ramada group acquired 100% of La Lácteo, a longstanding brand from Córdoba. The acquisition involves investments in Córdoba and Santa Fe, aiming to increase industrial capacity to 1.05 million litres of milk a day by the end of 2026.

In Argentina, where Nestlé has operated continuously for 96 years, the company has six factories. Nestlé employs more than 1,900 people in Argentina across factories in Córdoba, Santa Fe, Mendoza and Buenos Aires province.