Argentina's Dairy Sector Resurges: Record Production and New Credit Schemes
Sourse: dairynews.today
Argentina's dairy sector has experienced an 11% growth, supported by credits linked to milk prices, improved dollar prices, and increased industrial production.
The Argentine dairy sector is witnessing a remarkable recovery characterized by increased production, favorable dollar prices, and introduction of new credit lines that are pegged to milk liters. As per the reports from the Secretariat of Agriculture, Livestock, and Fisheries, from January to April 2025, Argentina produced 3.3 billion liters of milk, reflecting an 11% year-over-year increase — the highest rise in five years.
Dairy product industrialization also rose 13% during the same period, driven by better climatic conditions, the removal of dairy product export taxes in 2024, and enhanced domestic consumption. Furthermore, the first four months of 2025 witnessed the production of 389,700 tons of dairy products, with significant increases recorded in yogurt (23%), cream (18%), butter (14%), dulce de leche (11%), cheese (7%), and milk powder (4%).
A notable increase was also observed in milk prices; in May 2025, a liter of milk was priced at U$S 0.40, compared to the historical average of U$S 0.24. Additionally, an innovative financial instrument introduced by BICE in 2024, characterized by credits repayable in milk liters based on SIGLeA's official average price, has further bolstered the sector, promoting productive investments.
Dairy product industrialization also rose 13% during the same period, driven by better climatic conditions, the removal of dairy product export taxes in 2024, and enhanced domestic consumption. Furthermore, the first four months of 2025 witnessed the production of 389,700 tons of dairy products, with significant increases recorded in yogurt (23%), cream (18%), butter (14%), dulce de leche (11%), cheese (7%), and milk powder (4%).
A notable increase was also observed in milk prices; in May 2025, a liter of milk was priced at U$S 0.40, compared to the historical average of U$S 0.24. Additionally, an innovative financial instrument introduced by BICE in 2024, characterized by credits repayable in milk liters based on SIGLeA's official average price, has further bolstered the sector, promoting productive investments.
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