Fiscal Burden Threatens Argentina's Dairy Industry

Ercole Felippa, the president of the Cordoba-based dairy cooperative Manfrey, recently highlighted a pressing issue affecting the Argentine dairy industry. During an interview on the radio program "Punto y Aparte," Felippa revealed that a staggering 40% of the final price of dairy products is due to taxes, with nearly half stemming from provincial and municipal levies. He stressed the urgent need for a nationwide fiscal consensus to provide relief to the dairy sector.

Supporting Government Reforms

While supportive of some measures enacted by the government of Javier Milei, such as fiscal order and economic openness, Felippa called for these policies to be underpinned by agreements across all governmental levels: national, provincial, and municipal. He pointed out that although domestic consumption is gradually recovering, dairy prices have been rising at a slower pace than inflation. This phenomenon is mainly driven by an increase in the supply of raw milk, signaling a tentative growth.

Competition and Reflection

Felippa also addressed competitive pressures from Uruguayan products, which, despite lacking natural advantages, continue to dominate the market. This situation necessitates a critical evaluation of Argentina's cost structure by local producers. Finally, he emphasized the need for profound fiscal reforms that encompass provincial and municipal regions, aiming to reduce friction and foster agreements that can alleviate the tax burden on the sector, ultimately strengthening its competitiveness.