Decline in Consumption Hits High-Value Dairy Products Harder

The Argentine dairy market is facing a tough time as demand drops, affecting premium dairy products more severely than basic products like milk. Luis Machado, a specialized journalist in the agro sector, has brought attention to the fact that while the interannual sales of dairy products slipped by 6.3% in August, the overall trend from January to August shows an 8.5% growth compared to the same period in 2024.

Machado highlights a critical concern in demand rather than supply, noting that high-value products such as yogurts, desserts, and flans are the first to suffer when purchasing power declines. Conversely, staple dairy items like fluid milk or powdered milk maintain more stable demand even during consumption contractions.

Regarding pricing, Machado points out that there have been no drastic decreases in dairy prices. These products are gradually adjusted month by month, but the rate lags significantly behind salary increases, creating accessibility challenges for many consumers. Looking ahead, Machado warns that if domestic consumption does not improve and the industry cannot export more, an excess in production might become a severe issue for the sector.