Milk: augura rise in consumption and firm prices for tamberos

The internal consumption of milk does not seem to find soil. After a year closed down 12% in relation to domestic demand for fluid milk and 6% for dairy products in general, official data for 2019 show that the trend is strengthening. In the first quarter, consumption of fluid milk from Argentina decreased by 15% year-on-year. From the government, they believe that the trend is starting to change hands by the expected decline in inflation and some resumption of wage purchasing power, with the new paritarias in March.

They argue that domestic consumption of dairy products is subject to general laws because of the crisis, and that the dairy sector can react unhesitatingly to the recovery that augurs domestic demand while serving exports.

They argue that milk production will increase by 2% this year compared to the 10,640 million liters of the previous year and that even with an increase in consumption, there is no risk of sold out.

At the same time, there is "no reason" for a "price cut" for the producer in the spring, when there is an oversupply of milk. Exports, on the other hand, are improving. They rose 9% year on year, according to the latest official data from Agroindustria.

In the portfolio commissioned by Luis Etchevehere, they emphasize that the export allows the recomposition of the values ​​that the mills pay to the dairy producers. Primary producers charged $ 14.45 per liter in May, according to official data from Siglea, which records more than 3,300 liquidations.

This value is 130% higher than that received by tambero in May 2018. In April, the variation was 9%. With these data, Etchevehere; his boss of Gabiente, Santiago del Solar; and Lechería's director, Alejandro Sanmartino, explained that the export, which today accounts for 20% of total milk production, is the driving force behind the activity.

"The value of milk powder is $ 3,200 a tonne, which allows the local producer to receive 32 cents a liter," Sanmartino said at a meeting with reporters, including El Cronista.

While admitting that in 2018, the dairy sector had a very bad month (primary production running for months with costs well above the perceived price and industry being readjusted), officials felt that the dairy crisis was gaining momentum. years with floods and off international markets.

They mentioned that today, Argentina exports dairy products to 70 countries, of which Russia, Algeria and Brazil account for 70% of the volume exported. And they stated that the official goal was to reach 100 open markets for Argentine dairy products by 2025. For this, Etchevehere stressed, the trade agreements that Argentina can subscribe via Mercosur to other regions or countries, including the European Union, will be essential; Canada, EFTA or South Korea.