Dairy Sales Surge in Argentina Amid Economic Concerns
Source: dairynews.today
In March 2025, Argentina saw an 8.2% increase in dairy sales by volume and a 10.4% rise in milk equivalent liters compared to last year.
During March 2025, Argentina experienced a notable 8.2% growth in dairy product sales by volume along with a 10.4% increase in milk equivalent liters over the same month in the previous year, according to the monthly report from the Argentine Dairy Chain Observatory (OCLA). This surge follows a positive trend that began at the end of 2024, reversing significant declines recorded earlier that year.
"The sector is recovering sharply in 2025 after a severe drought," said Jorge Giraudo of OCLA, highlighting a 10% annual increase in production. Despite the growth, there is an ongoing shift towards basic, lower-value products due to declining purchasing power, indicated by an increase in sales of non-refrigerated milk and cheaper cheeses. While the domestic market shows volume growth, overall revenue is affected due to lower sales in dollars.
Additionally, exports have fallen by 21% in milk equivalent liters from January to March 2025, exacerbated by unfavorable currency exchange rates despite competitive international prices. If internal consumption doesn't increase in value and exports continue to decline, the dairy sector could face challenges with overproduction potentially depressing local prices further, affecting profitability and sustainability, especially for smaller farmers. The industry's recovery relies on aligning domestic prices with real wages and receiving full government tax reimbursements, coupled with a competitive exchange rate to rejuvenate exports.
"The sector is recovering sharply in 2025 after a severe drought," said Jorge Giraudo of OCLA, highlighting a 10% annual increase in production. Despite the growth, there is an ongoing shift towards basic, lower-value products due to declining purchasing power, indicated by an increase in sales of non-refrigerated milk and cheaper cheeses. While the domestic market shows volume growth, overall revenue is affected due to lower sales in dollars.
Additionally, exports have fallen by 21% in milk equivalent liters from January to March 2025, exacerbated by unfavorable currency exchange rates despite competitive international prices. If internal consumption doesn't increase in value and exports continue to decline, the dairy sector could face challenges with overproduction potentially depressing local prices further, affecting profitability and sustainability, especially for smaller farmers. The industry's recovery relies on aligning domestic prices with real wages and receiving full government tax reimbursements, coupled with a competitive exchange rate to rejuvenate exports.
