Argentinian Dairy Sector: A Promising First Semester with Looming Competitiveness Challenges

Production and domestic market grew, though structural challenges and the loss of export competitiveness persist.

The Argentine dairy sector ended the first semester of 2025 with growth in production and internal demand, marking a positive phase in terms of volume and market dynamics.

However, experts warn that this boost is based on a low interannual base (2024), marked by a notable decline in production during that year, which relativizes the recovery.

Structural concerns include: 

• the deterioration of international competitiveness due to artificially low exchange rates;
• high taxes;
• lack of domestic tax rebates; 
• complex trade with key markets like Brazil.

Contrary to the export nightmare, internal consumption showed recovery this year, though it has not consistently taken off due to the national economic context.

Experts from the sector and organizations like CREA and OCLA warn that if exchange rate competitiveness and tax pressure issues are not addressed, productive growth could lead to an excess supply, price falls, and a new structural crisis.