October 28, 2005

USDA: Argentina dairy and products annual 2005
 

Argentine dairy exports are forecast to reach record levels in 2006. This is a result of an ongoing recovery in production since 2003, strong international demand and expected high world prices. 

Domestic demand is also expected to grow but not commensurate with external demand, leaving somewhat larger milk surplus for exports.

Most players in the local dairy sector see a very promising future of their industry, since they believe that profound structural changes are occurring in the international market.

The fact that the EU will produce less milk in the future and consumption in Asia is expected to grow are opening up excellent opportunities for countries like Argentina, which has the natural resources for dairy production at very competitive costs. 

Local dairy exports currently penetrate over 100 different markets. 

Investment in the sector is expected to continue in the near future. At the farm level, dairy farmers are improving animal genetics and feed equipment, and are sowing new pastures. 

Although there are no official numbers, sources estimate that there are between 12,000-13,000 dairy operations in Argentina.

For the full USDA report, click here.