Argentinian Dairy Industry Sees 16% Export Growth Despite Global Price Drops

The Argentine dairy industry has shown significant growth in its export activities, with a notable 16.3% rise in shipments measured in milk equivalent liters during the first quarter of 2026, as reported by the Observatorio de la Cadena Láctea Argentina (OCLA). This surge has resulted in exports constituting 30.1% of the nation's total dairy production, climbing to 31.5% in March, significantly above the historical average of around 25%.

Milk powder has been the primary driver of this growth, accounting for 43% of the total export revenue. In terms of volume, the export of milk powder saw an impressive 42.3% year-on-year increase, making it the most significant export product compared to cheese (24.8% of the revenue) and other dairy derivatives such as dulce de leche and whey (19.8%).

However, the industry faces challenges from declining international prices. The average export price in the first quarter was $3,678 per ton, a 7.6% decrease from the previous year. The situation is particularly challenging for milk powder, whose average price fell by 10.1%, reaching $3,492 per ton.

The discrepancy between local and international prices, particularly those from the Global Dairy Trade (GDT), poses a challenge, with a transmission delay of two to three months. This requires Argentine producers and companies to optimize efficiency to counteract the reduced income per ton with higher sales volumes.