January 11, 2008

Argentina dairy farmers concede with latest farm gate price

After a series of protests staged by dairy farmers in Argentina and various talks with the government, the industry accepted a price at the farm gate close to ARS0.82 (US$0.26) per litre in December.

Dairy farmers in the country have led a long serious of protests by agricultural associations despite rising prices for farm products. The protests were centered on the rapid consumption of livestock lands in favor of soy expansion.

However, after long talks on the milk shortage, the industry accepted the current farm gate price which is eight times higher than the rate from 1991-2002 when price of milk was just ARS0.10 (US$0.03) a litre.

The retail price of milk in Argentina is subsidised by the state, but its cost in supermarkets is at least double what it was seven years ago.