Milk market in Argentina

Earlier Report Observations

Argentine milk production fell from 10.8 million tonnes in 2018 to 10.7 million tonnes in 2019, as the sector consolidated with a drop in the number of dairy farms from 11,542 in 2008 to 10,722 in 2018, leading to productive stagnation. The market volume followed a similar decline. Output then rebounded to 11.3 million tonnes in 2020.

A 4% increase in milk production lifted volumes to 11.9 million tonnes in 2021, driven by producer prices that outpaced inflation and improved profitability. In 2022, despite a damaging drought and heatwave early in the year, production held steady at 11.9 million tonnes. Favorable price ratios between milk and feed grains, together with stronger domestic sales of products like flavored milk and cream, helped offset weather‑related losses. The government’s move toward economic deregulation and market liberalization also began reshaping supply chains and trade flows.

Production contracted by 2% to 11.7 million tonnes in 2023, as soaring inflation—which reached 211.4%—squeezed producer margins and prompted the culling of less productive cows. Although the cost‑price relationship for dairy improved, the erosion of real purchasing power weighed on domestic consumption. By mid‑2024, the sector entered a recovery phase, with national milk output rising 11% in the first four months, supported by higher international prices and a more competitive exchange rate.

Production milk in Argentina

In kind, 2017-2020, K t

Argentina ranked 15th globally in milk production from 2017 to 2020.

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

In 2020, Argentina produced 11 447 thousand tonnes of milk, marking a modest year-on-year increase of 7.5%. Over the 2017-2020 period, production grew by 10.1%, with an average annual growth rate of 3.2%. The largest decline occurred in 2019, when production fell by 1.8%.

Annual dynamics of production in Argentina in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Argentina's milk production increased for the second consecutive year in 2020, with output valued at 33 339 million US dollars, up 6.6% from the previous year. From 2017 to 2020, production rose by 4.5%, averaging 1.5% growth per year. The lowest value was recorded in 2018 at 30 890 million US dollars, which also saw the largest decline of 3.1%.

Annual dynamics of production in Argentina in value, 2017-2020, M $ US

Exports milk from Argentina

Exports in kind, K t

In 2020, Argentina's milk exports reached 169.4 thousand tonnes, a sharp increase of 46.5% compared to the previous year. Over the 2017-2020 period, exports grew by 83.2%, with an average annual growth rate of 22.4%. The largest decline was in 2019, when exports fell by 19.6%, while the largest increase occurred in 2018, with a 55.5% rise.

Annual dynamics of product's exports from Argentina in kind, 2017-2020, K t

From 2017 to 2020, Algeria and Brazil were the key destinations for Argentina's milk exports in volume terms, together accounting for 82.5% of total flows. Other partners individually played a much smaller role.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Argentina in kind, 2017-2020

Exports in value, M $ US

In 2020, Argentina's milk export value amounted to 493.5 million US dollars, reflecting a sharp rise of 45.3% year-on-year. Over the 2017-2020 period, exports increased by 74%, with an average annual growth rate of 20.3%. The largest decline was recorded in 2019, when exports dropped by 17.1%.

Annual dynamics of product's exports from Argentina in value, 2017-2020, M $ US

From 2017 to 2020, Algeria and Brazil dominated Argentina's milk export markets in value terms, jointly accounting for 82.7% of total flows. Other countries made up the remaining share.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Argentina in value, 2017-2020

Imports milk to Argentina

Imports in kind, K t

The import market showed an unstable trend during this period. Import levels fluctuated significantly, with a 5.8-fold difference between the peak in 2018 and the low in 2020. In 2020, Argentina imported 0.7 thousand tonnes of milk, an 80.8% decrease from 2019. The maximum volume was recorded in 2018 at 4.3 thousand tonnes, which also saw the largest increase of 80.4%.

Annual dynamics of product's imports to Argentina in kind, 2017-2020, K t

From 2017 to 2020, Uruguay and Chile were the dominant sources for Argentina's milk imports in volume terms, jointly accounting for 84.6% of total flows. The remaining volume was distributed among smaller markets.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Argentina in kind, 2017-2020

Imports in value, M $ US

The import market exhibited volatility over the observed period. Imports changed by 4.9-fold from the peak in 2019 to the trough in 2020. In 2020, Argentina's milk imports were valued at 1.8 million US dollars, a 79.7% decrease year-over-year. The maximum value was recorded in 2019 at 8.7 million US dollars, which also saw the largest increase of 62.4%.

Annual dynamics of product's imports to Argentina in value, 2017-2020, M $ US

From 2017 to 2020, Uruguay, Chile, and Brazil were the main suppliers of milk to Argentina in value terms. Uruguay accounted for 57.4% of imports, Chile for 21.1%, and Brazil for 7.6%, together forming 86.1% of total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Argentina in value, 2017-2020