Argentina: Dairy and Products Annual

  |   Attaché Report (GAIN)   |   AR2022-0017

2022 Argentine dairy production is projected at the same level with respect to 2021 or with a drop of less than one percent year-on-year to 11.495,000 MT, due to abnormally dry and warm weather during the first half of the year which is expected to continue until the end of the year. Post forecasts Whole Milk Powder (WMP) production to rise to 245,000 MT in a recessionary domestic market with stable production compared to 2021, which would result in a higher export balance. As Argentine consumers struggle to maintain already decreased household dairy consumption in face of very high inflation, the entire increase in processed product will be exported, which would bring exports of WMP to 155,000 MT. The Russia-Ukraine war created a challenge for cheese and butter exporters to Russia. Since the beginning of the war, sales to that destination fell sharply, although operations are still being carried out and it is expected that the trend will continue during the rest of 2022.

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