Quarterly Argentina Milk Production Update – Sep ’19
Executive Summary Argentine milk production figures provided by the Argentina Ministry of Agriculture were recently updated with values spanning through the end of the first quarter of the ’19-’20 production season. Highlights from the updated report include:
- Argentine milk production increased on a YOY basis for the first time in the past ten months during Aug ’19, finishing up 0.2%. YOY increases in Argentine milk production are expected to continue throughout the final months of the 2019 calendar year as lower feed costs, greater industry efficiency and a recovery in prices are expected to more than offset rising inflation rates.
- Low farmgate milk prices, poor weather, high inflation and increased production costs contributed to the Argentine dairy cow herd declining to a long-term record low level throughout 2018. USDA is projecting a continued reduction in the Argentine dairy cow herd through 2019 as the consolidation of operations continues along with the culling of less productive cows.
- Argentina is the fifth largest global dairy exporter, accounting for 2.5% of combined butter, cheese, nonfat dry milk and whole milk powder exports throughout 2018. The bulk of Argentine dairy exports are in the form of whole milk powder and cheese.