Argentina: Livestock Outshines Grains and Dairy in Economic Struggle

As the agricultural campaign of 2024/25 unfolds, the economic landscape is dominated by low international prices. This decline has led to a loss in the purchasing power of grain production against most inputs, costs, and investments.

Coninagro's Report: Cattle Takes the Lead

The latest monthly report by Coninagro, measuring the purchasing power of six key agricultural products, declared livestock as the victor. Bovine animals stood resilient and performed better compared to grains and dairy.

The Rise in Livestock Pricing

Since mid-January, cattle prices negotiated in the Mercado Agroganadero de Cañuelas (MAG) saw a substantial recovery, propelling current prices to a floor of $3,000 per kilo alive. This uplift enhanced ranchers' purchasing power over most agricultural inputs and costs.

Coninagro's report highlighted that the input-product relationship strengthened in pastures, real estate, and corn, also gaining a favorable position in relation to buying trucks and wire compared to the past five years' average.

The Fate of Grains and Dairy

On the grain side, falling prices have led to diminished purchasing power against most agricultural inputs, costs, and investments, except fertilizers and real estate. “The exception remains fertilizers and real estate, where grains maintain a favorable relationship both on a yearly comparison and a five-year average,” said cooperativists.

In contrast, the dairy sector shows a better situation than grains, both in annual comparison and five-year averages, but not as optimistic as cattle.

Regarding dairy, its purchasing power advanced in terms of costs and inputs like tractors and trucks, yet declined against rural worker wages compared to the previous year and the last five years' averages.