Argentina: Dairy and Products Semi-annual

  |   Attaché Report (GAIN)   |   AR2021-0012

MY 2021 fluid milk production is projected at 11.58 million tons, an increase of 1.1% over revised MY 2020 production levels. Argentine dairy producers have responded to a period of negative margins caused by rising feed costs and domestic price controls by increasing production. Recent price increases, if sustained, could lead to a return to profitability for medium to large sized dairies, but small dairies continue to struggle, leading to increased consolidation. MY 2021 dry whole milk exports are projected at 160,000 tons, up 8% over MY 2020 levels. Cheese and butter exports are projected to decline slightly.

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