Dairy Production Remains Strong Despite Heavy Rains

In the Western Basin of Buenos Aires, dairy production has shown resilience against climatic adversities. According to the September report from Caprolecoba, recovery has been robust, and the sector believes that "conditions are in place to maintain the levels we have been recording."

Despite excess rainfall that caused waterlogging in more than three million hectares in areas like 9 de Julio, Pehuajó, and Carlos Casares, the basin reports good forage availability, favorable relative prices compared to corn and soy, and weather forecasts do not predict extreme rains in autumn.

The report highlights that between January and August 2025, national milk production grew by 11% year-on-year compared to 2024, a figure in line with trends observed in the US, New Zealand, and the European Union. However, this expansion could raise alerts of oversupply, especially if large international buyers reduce their purchases due to global pressures.

In the local commercial market, many dairy SMEs face difficulties in placing their surplus production, due to industrial plants operating at full capacity and a decrease in domestic consumption, which is mainly sustained through offers and promotions.

The report also notes that in response to the currency crisis and political uncertainties, the government quickly intervened in managing export duties (DEX) on grains and oilseeds, prompting sectoral debates on how to balance economic policy decisions with the stability of the agricultural sector.

For many producers and industry players, the message is clear: the dairy sector will have to navigate structural challenges, global risks, and a strong local disposition to maintain production levels that, despite climatic adversity, show robustness.