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Argentina's dairy exports hit century high, but farmers face profit squeeze
🇦🇷 Argentina /Economy & Trade

Argentina's dairy exports hit century high, but farmers face profit squeeze

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Argentine dairy exports reached their highest volume of the century in the first quarter, absorbing 268 million liters of milk equivalents monthly.
  • Despite record exports and production growth, dairy farmers faced declining profitability, reduced business share, and financial pressure, with real milk prices falling significantly.
  • The price received by farmers dropped 19% in real terms year-on-year, and their share of the final product value fell to a decade low of 23.2%.

Argentina's dairy sector is experiencing a stark paradox: while exports surge to record levels and production rebounds, dairy farmers are grappling with shrinking profitability and mounting financial strain. In the first quarter of the year, dairy exports hit their highest volume for the start of the year in the 21st century, absorbing an average of 268 million liters of milk equivalents per month. This 16% year-on-year increase was driven by higher shipments of milk powder, cheese, butter, and other derivatives, recovering from climate and economic challenges in 2024.

the dairy chain achieved the highest exported volume for a start of year so far this century.

— Juan Manuel Garzón and Franco ArtussoEconomists from Ieral, Fundación Mediterránea, reporting on dairy export volumes.

However, this export boom has not translated into better conditions for producers. The average real price for raw milk in the first quarter was 19% lower than a year ago and also 19% below the 20-year historical average. In constant U.S. dollars, farmers received an average of $0.35 per liter, a 22% decrease from the same period in 2025, marking a continuous decline since mid-2024. Even with a partial recovery in dollar terms recently, the real price deterioration remains severe.

the producer received an average of US$0.35 per liter, 22% less than in the same period of 2025.

— Ieral reportDetailing the real dollar price received by dairy farmers.

Adding to the pressure, the farmer's share of the final price for a basket of dairy products fell to 23.2% in April, the lowest in a decade, down from a historical average of around 28%. This indicates that the price of raw milk has fallen much more sharply than the prices consumers pay. While dairy products in stores decreased by 11% in real terms between March 2025 and March 2026, the price received by producers dropped by 18% during the same period. Consequently, the average profitability for dairy farms was negative for the fifth consecutive month in March, reaching -0.9%, the worst March in a decade.

the primary producer's participation in the final value of a basket of dairy products fell to 23.2% in April, the lowest of the last decade.

— Ieral reportHighlighting the declining share of farmers in the dairy value chain.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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