Milk powder market in Argentina

Earlier Report Observations

In the initial period from 2018 to 2020, the milk powder market volume in Argentina fluctuated under the influence of export dynamics and external shocks. A 34% increase in exports in 2018, supported by government promotion programs like SIGLeA, directed a significant portion of production abroad. The following year, a drop in exports coincided with stagnant raw milk production and high volatility in world prices, which increased availability for the domestic market and raised the volume to 120.1 K t. In 2020, the COVID-19 pandemic disrupted global supply chains, while restrictions in key export destinations such as Algeria affected trade flows, contributing to a decline in domestic volume to 99.1 K t.

The situation changed sharply in 2021, when favorable external conditions led to five-year highs in milk powder prices, stimulating local production. Simultaneously, domestic consumption of dairy products grew by 5%, and restrictions on packaged UHT milk imports redirected demand to local products, lifting the market volume to a record 146.9 K t. However, in 2022, a historic drought reduced feed availability and increased costs, leading to a drop in production. Record exports of dairy products, where milk powder accounted for 46% of the total, further reduced domestic supply, lowering the market volume to 84.1 K t. That same year, Nestlé launched new products, including organic milk powder and A2 protein powder, targeting both domestic and export markets.

In 2023, the market volume recovered to 94.6 K t, occurring against a backdrop of continued production decline, indicating changes in export structure or domestic consumption.

Production milk powder in Argentina

In kind, 2017-2020, K t

Argentina ranked as the world's 10th largest producer of milk powder between 2017 and 2020.

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

In 2020, Argentina produced 265.8 K t of milk powder, representing a 14.1% increase from 2019. Over the 2017-2020 period, production grew by 36.5%, which translates to an annualized rate of 10.9%. The largest annual increase occurred in 2018 at 19.5%, while 2019 saw minimal change.

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

In value, 2017-2020, M $ US

Argentina's milk powder production increased for the third consecutive year in 2020. The output was valued at 782.9 M $ US, showing a substantial 14.1% gain compared to 2019. From 2017 to 2020, production rose by 29.4%, with a compound annual growth rate of 9.0%.

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

Exports milk powder from Argentina

Exports in kind, K t

In 2020, Argentina exported 167.2 K t of milk powder, marking a sharp 45.1% year-over-year advance. Between 2017 and 2020, exports increased by 83.8%, equating to an annualized growth rate of 22.5%. The largest decline was recorded in 2019 at 19.7%, while the biggest increase occurred in 2018 with 57.7% growth.

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

From 2017 to 2020, Algeria and Brazil remained the key destinations for Argentina's milk powder exports in kind, jointly accounting for 83.1% of total flows. Other trading partners were individually much less significant.

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, the value of milk powder exports from Argentina totaled 492.4 M $ US, indicating a dramatic 45.1% increase compared to 2019. Over the 2017-2020 period, export values rose by 74.2%, representing an annualized growth rate of 20.3%. The largest decline occurred in 2019 at 17.1%.

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

Between 2017 and 2020, Algeria and Brazil consistently accounted for 82.8% of Argentina's total milk powder exports in value terms. This indicates a high degree of market concentration, with numerous smaller markets forming a long tail of less significant destinations.

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 powder to Argentina

Imports in kind, K t

The import market exhibited an unstable trend throughout the period. Argentina's milk powder imports reached 0.5 K t in 2020, representing an 80.9% decline from the previous year. The maximum volume was recorded in 2019 at 2.4 K t, while the largest annual increase occurred that same year at 328.6%. From 2017 to 2019, imports showed considerable volatility with a 5.8-fold difference between the peak and trough.

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

Between 2017 and 2020, Argentina's milk powder imports in kind were strongly focused on Uruguay, which accounted for 72.9% of total flows. Other partners supplied the remaining volume.

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 data reveals irregular changes, indicating a volatile market environment. In 2020, Argentina imported 1.5 M $ US worth of milk powder, representing a sharp 82.2% year-over-year contraction. The maximum value was recorded in 2019 at 7.6 M $ US, while the largest annual increase occurred that same year at 327.4%. Between 2019 and 2020, imports showed a 5.6-fold difference between the highest and lowest points.

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

From 2017 to 2020, Uruguay was the principal source of milk powder imports to Argentina, accounting for 74.3% of total imports in value terms. Other destinations formed a less significant portion of the import market.

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

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