Spring Dairy Market: Stable Prices Ahead

According to consultant Marcos Snyder, the prices paid to dairy farmers in Argentina are set to remain stable during the spring, approximately aligning with historical averages. This stability is anticipated despite ongoing market pressures. Between January and July of 2025, dairy production grew by 11% compared to the previous year, driven by favorable conditions and increased supply chain mobilization.

During this period, domestic consumption also saw an increase, rising from 170 to 190 liters per capita annually. However, growth came at the cost of reduced constant values as the price of industrial milk equivalent dropped by 7% in real terms, straining producer income in the face of rising inflation.

In August, the average price paid to dairy farmers was $473.7 per liter, reflecting a nominal increase of 13.1% from the same month the previous year. Nonetheless, with wholesale inflation at 23.1%, this nominal increase does not keep pace in real terms. Despite these challenges, the analyst forecasts that producer prices will stay stable, aiding the industry in securing raw materials and reducing competition among processors.