Was Milei's Administration the One That Needed the Agricultural Sector?

During Expoagro 2025, dairy farmer and CREA representative Jorge Olmedo shared his insights with Bichos de Campo about the current state and future of Argentina's dairy industry under present conditions.

In a sector historically burdened by costs and regulations, Olmedo notes the current period of profitability, albeit with significant challenges ahead. He stated, "The export at current values lacks competitiveness. I don't want to mention the exchange rate delay, but I will point out the Argentinian cost. Venturing abroad is costly."

Despite a stagnant milk price from mid-last year, Olmedo commented: "There has been a slight adjustment, but in real terms, the value of milk is gradually declining and decreasing in dollar terms."

Surprisingly, Olmedo asserted that "the sector is experiencing a good moment of profitability." After a challenging 2023 marked by drought, farm closures, and above-average cow slaughters, he highlighted: "Now, with rising prices and a favorable grain relationship, we're in a good phase."

However, Olmedo stresses that efficiency is key: "Today, success relies on each producer's efficiency. Inflation hides many aspects, but the real weight lies in how many inputs we use and our unitary efficiency."

The dairy industry must focus on exports as internal consumption accounts for 70-75%: "If we wish to grow, we must target exports." Olmedo warns of the challenges posed by high dollar prices affecting competitiveness.

Regarding the government's promise to gradually eliminate grain tariffs, Olmedo believes it is a necessary step: "This year, the government is defusing a bomb and looking for ways out of the corset we have. The goal is clear: remove tariffs and compete globally equally." He adds, "No one expects dairy tariffs on corn or soybeans to improve business; that wouldn't be a serious analysis."

With regained profitability but unresolved structural challenges, the dairy sector faces a transition phase. Stability and efficiency in an increasingly concentrated market, according to Olmedo, will be crucial.