Concentration in Argentine Dairy Industry Intensifies with Facility Closures

The Argentine dairy industry continues its trend towards greater concentration. According to the latest report from the Argentine Dairy Chain Observatory (OCLA), as of June 2026, there were 8,870 registered dairy farms. This marks a reduction of 231 facilities compared to June 2025, representing a 2.56% decrease over the year. The trend aligns with a decade-long pattern of consolidation in the sector.

In recent months, the sector fell below the 9,000 establishments mark for the first time this year, a notable decline from over 10,000 facilities in 2023 and around 30,000 in the late 1980s. This consolidation has resulted in fewer but larger dairy operations, with those holding over 500 cows now constituting 7.1% of all farms, yet responsible for 29.7% of the national herd and over a third of milk production.

Conversely, smaller farms with fewer than 100 cows make up 32.7% of the total but account for only 8.1% of the cows and less than 10% of milk production. This shift highlights the increasing dominance of larger-scale dairy operations in Argentina.

Additionally, the total number of dairy cows has decreased. By June 2026, the dairy herd size was 1,527,750 cows, a reduction of 4,017 cows compared to the previous year, and down by 62,224 from June 2024. The average herd size per farm has grown, reaching 174 cows per establishment, up from 170 in 2025 and 162 in 2024.

The OCLA report underscores that the Argentine dairy industry is undergoing structural changes, characterized by the closure of smaller farms and the expansion of larger, more productive units. This transformation poses new economic, social, and territorial challenges for the entire dairy supply chain in the country.