Dairy Sector's Mixed Signals: Price Delays Amid Rising Consumption and Exports
Sourse: dairynews.today
CONINAGRO's Regional Economies Traffic Light indicates improvement in internal dairy consumption and exports despite price lags.
The latest "Regional Economies Traffic Light" from CONINAGRO marks the dairy sector in Argentina in yellow, highlighting a mixed scenario. Although internal consumption and exports exhibit encouraging trends, pricing remains significantly lagged behind both inflation and production costs. This contrast is keeping the sector on alert.
According to the report, dated April 2025, there has been an increase in activities marked in green, pointing towards positive growth. However, the yellow-coded dairy industry reflects an ongoing struggle to keep pace with economic pressures, despite the consumption boost.
In detail, prices and costs in the dairy sector fall behind inflation, though there is a noticeable uptick in both exports and internal consumption. Contributing factors include slow price movement vis-à-vis inflation and rising expenses, compounded by a rather appreciated currency that fails to push export prices.
The Traffic Light analysis evaluates three core components—business, production, and market. The first explores price and cost evolutions, the second assesses area or stock and production levels, and the third reviews export and import trends alongside domestic consumption.
Notably, while certain sectors like cotton and grains are lagging due to pricing inadequacies, industries like honey are thriving, with producers citing favorable conditions contributing to a bumper produce year.
Thus, while some sectors see positive momentum, others like dairy remain cautiously optimistic, navigating through price challenges while riding on increased internal and external demand.
According to the report, dated April 2025, there has been an increase in activities marked in green, pointing towards positive growth. However, the yellow-coded dairy industry reflects an ongoing struggle to keep pace with economic pressures, despite the consumption boost.
In detail, prices and costs in the dairy sector fall behind inflation, though there is a noticeable uptick in both exports and internal consumption. Contributing factors include slow price movement vis-à-vis inflation and rising expenses, compounded by a rather appreciated currency that fails to push export prices.
The Traffic Light analysis evaluates three core components—business, production, and market. The first explores price and cost evolutions, the second assesses area or stock and production levels, and the third reviews export and import trends alongside domestic consumption.
Notably, while certain sectors like cotton and grains are lagging due to pricing inadequacies, industries like honey are thriving, with producers citing favorable conditions contributing to a bumper produce year.
Thus, while some sectors see positive momentum, others like dairy remain cautiously optimistic, navigating through price challenges while riding on increased internal and external demand.
