Dairy Product Consumption Faces Continued Decline in Argentina
The consumption of dairy products in Argentina continues to show signs of weakness. According to the Observatory of the Argentine Dairy Chain (OCLA), domestic sales experienced a sharp decline in April, concluding the first four months of 2026 with lower results compared to the previous year.
The National Directorate of Dairy reported a 4.7% decrease in sales volume in April compared to the previous month. When measured in liters of milk equivalent, the drop was 5.8%. From January to April, domestic sales fell by 1.5% compared to the same period in 2025, with a 2.1% decline in milk equivalent liters used for the products sold.
Analyzing different product categories reveals varied behaviors. Cheese was the only segment that showed growth both in the monthly comparison and the annual accumulation. This category accounts for nearly 50% of the total milk produced in the country. In contrast, fluid milk and powdered milk recorded significant declines. In the first four months, fluid milk sales dropped by 2.1%, while powdered milk saw a substantial decrease of 23.6%.
The OCLA pointed out that the deteriorating purchasing power of consumers and increasing household spending pressures continue to impact food and beverage consumption, including dairy products. Additionally, there is a rise in lower-priced substitute products such as dairy beverages, grated products, margarines, and other alternatives competing directly with traditional dairy products.
The observed consumption levels are among the lowest in the historical series, with only the first four months of 2024 showing worse figures. Some of the milk not absorbed by the domestic market was redirected to products with longer shelf lives, mainly cheeses, which absorbed much of the production increase along with exports.
The report also notes that many companies maintained sales volumes through promotions, discounts, and special offers. These strategies focused on more basic and higher turnover products, while specialty items continued to face greater consumption challenges. While production and exports are showing recovery in 2026, the domestic market remains a primary challenge for the Argentine dairy industry.
