Argentina now sends 29% of dairy output abroad
Argentina’s dairy industry has increased its focus on international markets in recent months, with exports now accounting for 29% of national production. Sebastián Alconada, the country’s national director of dairy farming, gave the figure during the 119th Rafaela Rural Expo.
Alconada said the current share contrasted with the sector’s historical distribution, when roughly 80% of output was sold domestically and 20% was exported. He said the 29% proportion had been maintained for several months and described dairy trade as having posted successive records.
The official associated the stronger export performance with three conditions: domestic consumption that has remained stable, improved international market conditions and greater commercial openness. Argentina currently has access to 104 markets for dairy products, while Brazil remains an important buyer.
Cheese, powdered milk and whey were identified as the main products benefiting from current export prices. “Today the export price is very good for cheese, powdered milk and whey,” Alconada said. The products form part of Argentina’s principal dairy export basket.
Rafaela was highlighted as one of the areas affected by the shift because part of its dairy processing is directed towards overseas sales. Alconada said the greater export contribution created opportunities for a supply chain whose domestic market had remained stable. He also referred to New Zealand and Australia as major international producers whose output could affect global market conditions.
Alconada also listed access to finance and business management among the issues requiring improvement. At the expo, he took part in a session on debt restructuring and financial alternatives, and said dairy farms should seek specialised management advice, as they already do for nutrition, reproduction and animal health.
Work is under way with participants across the dairy chain and with agencies including SENASA on new financing tools. Among the options being examined are arrangements that could allow livestock to be used as collateral for credit lines. Alconada said export growth could become one of the pillars supporting the expansion of Argentina’s dairy industry.
