Argentina: Milk Rises in Value Against Depreciating Soybeans

A comprehensive report conducted by CONINAGRO in collaboration with consultancy firm DATA has undertaken the task of assessing the purchasing power within Argentina's agricultural sector. The study juxtaposes the fluctuating value of soybeans against the increasing value of milk in the current economic climate.

The agricultural campaign of 2024/2025 presents a series of challenges due to the decline in international commodity prices, leading to a diminished purchasing power relative to inputs and agricultural investments. 

Among the agricultural products assessed, the report notes that the "purchase power of milk has continued to improve," particularly when contrasted with previous years. In comparison to other commodities like soybeans, which have seen a decline, milk showcases an upward trend in terms of purchasing inputs and costs, such as tractors and pickups.

The analysis reveals that soybeans have experienced one of the most significant declines in purchasing power over recent years. For example, a considerably higher quantity of soybeans is now required to purchase machinery, with a noted increase of 39% more for a harvester and 42% more for a seeder.

The report identifies positive developments, such as a marked reduction in the quantity of soybeans required to purchase key herbicides, pointing towards an improvement in soybean's purchasing power regarding certain inputs.

While commodities like grains have struggled against inputs such as fertilizers, freight costs, and diesel, insights from the report portray milk as a commodity gaining competitive edge in the Argentine agricultural market.