The expectation for an increase in the price of milk to the producer is based in the dairy argentina is practically dependent on its entire domestic market. As we can see in the chart with the "Evolution of milk production and exports of dairy products in Argentina," we had a peak in the year 2011 with 450.415 tons exported, representing a 24% of the total production national. Thereafter began to decline even if the price of the 2013 exceeded 25% in 2011. We arrived at the 2015 with a total of 332.395 tons exported averaging 17% of the volume produced. In the Box Exports 1st two months of 2016, exports of dairy products decreased -54% over the same period in 2015, estimating then be exporting around 10% of the volume produced
An unexpected factor has been the flood that affects a large part of the milkshed national. Recently, and after months without news, it has generated a growing interest in the milk with companies announcing for the raw material delivered May 3,7 -3,8 $/lt and in June for $4/lt.
The expectations of domestic production for the 2016 haunt falls in the order of 20-25% compared to the year 2015...back to a production level of approximately 9,000 million litres virtually eliminating the export capacity.