Argentinian Dairy Industry Anticipates Rebound in 2025 After a Volatile 2024
Argentinian Dairy Industry Anticipates Rebound in 2025 After a Volatile 2024
The dairy industry in Argentina, particularly in the provinces of Córdoba and Santa Fe, faced a turbulent year in 2024 due to significant drops in production. However, industry experts predict a recovery in 2025, estimating a growth close to 6%, driven by improving circumstantial and climatic conditions.
According to the Observatorio de la Cadena Láctea Argentina (OCLA), national milk production amounted to 10.590 billion liters in 2024, reflecting a 6.5% decline compared to the previous year due to a decrease of 710 million liters. This pattern of decline was particularly pronounced in larger dairy-producing regions and varied depending on farm size, productivity levels, and geographic regions.
The dairy farms faced a 14.5% production slump in the first four months of 2024 compared to 2023. However, a recovery was observed between May and July, with a modest annual rate improvement by the year-end.
Challenges and Future Projections
The Argentinian dairy industry is cautiously optimistic about 2025. The OCLA projects a production increase of 5.72%, forecasting a total of 11.190 billion liters for the year. Despite these positive projections, the industry remains vulnerable to external variables including potential reductions in export duties on soy and cereals, which could increase feed costs and land rents.
Additional factors such as a decrease in the number of dairy cows, persistent marginalization of production units, and currency depreciation could further impact competitiveness.
“This projection aims to provide an outlook for 2025 based on currently available data," the OCLA stated, "yet the high volatility and uncertainty that characterize the beginning of this year could lead to significant deviations from these forecasts.”
