Gloria says Argentine dairy is an established global brand

Gloria’s entry into Argentina follows its purchase of 80% of Saputo’s local operation. In an interview with Agrositio, Guillermo Pérez Mazás, the commercial manager of Gloria Argentina, described the company’s long-term view of the country’s dairy sector as positive, while noting that conditions vary from year to year.

Gloria has an international sales orientation. It exports 90% of its output to more than 60 countries and can operate simultaneously in roughly 20 to 25 markets. Its main destinations include the Middle East, south-east Asia, the Americas and South America.

Pérez Mazás said the Argentine origin of dairy products attracts buyers at international trade fairs. “The fact that it is Argentina makes customers come to buy,” he said, adding that the same response did not occur with other South American countries. He said Argentine dairy was associated with quality and described the country’s reputation as “a brand already made in the world”. In his view, that recognition creates scope for more developed products with greater added value.

He also said Argentina had the technological capacity to compete in more sophisticated dairy categories. “Argentina can compete, of course,” Pérez Mazás said. He described the technology used by Argentine dairy companies as among the most advanced globally, comparable with that of Europe and the United States, and said companies continued to invest in the latest equipment.

Export prospects differ by product. Yogurt faces logistical constraints because its shelf life is short and sea transport can take as long as 60 days. Products in powder form, UHT products and other longer-life goods are better suited to distant markets, according to Pérez Mazás.

Gloria’s requirements for milk suppliers focus on compositional and bacteriological quality. The company pays for kilograms of useful solids—mainly fat and protein—rather than simply for litres of milk. It uses references such as SIGLeA and applies incentives intended to encourage greater solids production. It also monitors somatic-cell counts, which affect cheese production, and colony-forming units. Pérez Mazás said bacteriological conditions were generally good across most Argentine dairy regions.

Pérez Mazás said Argentine producers had become more efficient after competing for land with soyabeans and other activities offering higher returns. He described the change over roughly the past 15 years, during which he has worked with milk procurement and farmers, as substantial. The shift included business improvements, better living standards and wider use of technology. He said these production systems also provided the dairy industry with greater stability in milk supplies.

The international market remains volatile. Dollar prices for commodities can move by as much as 30% within two or three months, he said, and sharp declines can lead some customers to reduce contracts. “In the long term we are clear about it and everyone knows where we are heading, but in the short and medium term volatility in prices sometimes does not allow us to find firm ground,” Pérez Mazás said.