Positive Indicators for Investment in the Dairy Sector
Source: dairynews.today
The Argentine dairy sector shows promise as internal consumption recovers, yet export challenges remain.
In recent developments within Argentina's dairy sector, several positive indicators have emerged that may spur investment. The internal consumption of dairy products has notably improved compared to a year ago, with the internal sales volume and revenue growing by 17.2% and 21.2% respectively, as reported by the CREA movement.
This growth is attributed to an increase in purchasing power relative to dairy prices, a 31.4% improvement from February 2024. Additionally, dairy prices have remained below inflation since October 2024, making them more accessible to consumers. Moreover, the national milk production for the first two months of 2025 has risen by 6.8% compared to the same period the previous year, suggesting continued growth in the coming months.
However, with the international milk price falling and an uncompetitive local exchange rate, there are concerns about future pricing pressures domestically. Yet, many dairy companies remain optimistic about investing further since the producer price remains above the five-year average, and production costs have slowed.
This growth is attributed to an increase in purchasing power relative to dairy prices, a 31.4% improvement from February 2024. Additionally, dairy prices have remained below inflation since October 2024, making them more accessible to consumers. Moreover, the national milk production for the first two months of 2025 has risen by 6.8% compared to the same period the previous year, suggesting continued growth in the coming months.
However, with the international milk price falling and an uncompetitive local exchange rate, there are concerns about future pricing pressures domestically. Yet, many dairy companies remain optimistic about investing further since the producer price remains above the five-year average, and production costs have slowed.
