Argentina faces a severe decline in dairy consumption, with 2024 projected to end with the lowest levels in the country’s history. The drop affects various dairy products and production rates, reflecting broader economic pressures.
Argentina is facing a dramatic decline in dairy consumption, with projections suggesting 2024 could see the lowest levels ever recorded. The latest report highlights a significant drop in dairy consumption across various categories, reflecting broader economic and consumer trends.
Consumption Decline Overview
According to the report, dairy consumption in Argentina has fallen by 17.3% in tons and 14.4% in liters compared to the same period in 2023. This downward trend, if continued, could result in 2024 ending with the lowest dairy consumption levels in the country’s history.
Historical Context
Historically, Argentina’s dairy consumption has experienced fluctuations. In 1990, the country had an annual per capita consumption of 162 liters, peaking at 227 liters per capita in 2000. Post-economic crisis in 2003, consumption dropped to 179 liters per capita but rebounded to 217 liters by 2015. By the end of 2019, it fell to 182 liters per capita, slightly recovering to 194 liters per capita in 2023.
Detailed Consumption Breakdown
The decline is evident across various dairy products, with significant reductions noted in both fluid and powdered milk. The detailed breakdown is as follows:
| Dairy Product | June 2024 Decline | First Half of 2024 Decline |
| Fluid Milk | 23% | 16.2% |
| Non-Refrigerated Fluid Milk | 18.5% | 16.2% |
| Refrigerated Milk | 12.2% | 16.2% |
| Powdered Milk | 33% | 30% |
| Cheese | 18% | 11% |
| Desserts and Flans | 53.4% | 53.4% |
| Yogurt and Fermented Milk | 21.2% | 21.2% |
| Butter | 16% | 16% |
| Cream | 12% | 12% |
| Dulce de Leche | 13.7% | 13.7% |
Impact on Milk Production
Milk production in Argentina has also suffered, with a 12.6% year-on-year decline in the first half of the year. This marks the lowest production level in absolute terms over the past 17 years and the lowest per capita production in the country’s history.
Export Resilience
Despite domestic challenges, Argentina’s dairy exports showed some resilience. June 2024 saw a 6% year-on-year increase in export volumes and an 8% rise in equivalent liters. For the first half of the year, export volumes grew by 6.7% in tons and 13% in equivalent liters compared to the same period in 2023. However, export revenue declined by 2.4%, with exported volume representing 28.5% of total production during this period.
As Argentina grapples with these challenges, the dairy sector continues to face pressures both domestically and internationally. The country’s efforts to manage consumption trends and bolster production will be crucial in navigating these turbulent times.
