Argentina’s Dairy Sector Produced 6% More as Milk Prices Lagged Inflation

Argentina’s dairy sector recorded higher output and exports alongside a weaker increase in the price received by milk producers. CONINAGRO reported that accumulated production was 6% above the comparable period, while dairy exports increased by 19%.

The price paid to producers stood at 527 pesos per litre in July. This represented an annual increase of 11.5%, according to the organisation’s figures.

The reported rise in the milk price was below the inflation rate cited by CONINAGRO. Consumer prices increased by 33.8% over the same annual comparison, leaving a difference of 22.3 percentage points between inflation and the change in the producer price.

The figures therefore present separate movements within the dairy industry: accumulated milk production rose by 6%, and overseas dairy sales advanced by 19%, while the nominal payment for a litre of milk increased by 11.5% over the year to July.

CONINAGRO’s data also identify July as the reference month for the producer price. The production and export figures are presented as accumulated changes, whereas the price figure compares July with the same month a year earlier.

No additional price, volume or regulatory measures were provided in the report. The available figures cover the 527-peso-per-litre payment, its 11.5% annual increase, the 33.8% inflation rate, 6% growth in accumulated production and 19% growth in dairy exports.