Dairy Sector Calls for Price Adjustments Amid Historic Milk Price Hike in Argentina

The price of milk in Argentina closed in 2024 at $0.43 per liter, marking a historically high value that has raised concerns within the sector. Dairy industry representatives are calling for a price correction to avoid sustainability issues.
The Integrated Management System for Argentine Milk (SIGLEA) reported that in December 370 dairy companies paid an average of 441 pesos per liter for raw milk. While this reflects a minor 0.3% variation from the previous month, it represents a notable 128% increase compared to the previous year.
The dairy industry's concern stems from the dollar equivalency which hit $0.43 per liter—historically high—as typical averages range between $0.30 and $0.33. This significant increase of 45% in dollar terms positions Argentina among the top countries for milk prices globally.
The Dairy Chain Observatory (OCLA) recently released a comparative analysis of milk prices in dollars across Argentina and other producer countries. Though Argentina's milk remains competitive internationally when adjusted for solid content and real multilateral exchange rates, current dollar prices are not sustainable short-term. Some sources suggest a 10% decrease in prices may be necessary in the coming months.