The production of milk during the course of 2018 (January to may) comes to you, marking an increase of +7.5 per cent on the same period of 2017. Remain the trend and the 2018 promediara +8% over the full year 2017, Argentina would be producing in the year a total of 10,905 million litres. In the same period the values of the powdered milk in local currency increased by 35% with respect to 2017 (although the values in us $ /tn are similar in both periods, the type of change -with prom. +34%- it is different).
This variation unexpected factors that make the business exporter has turned on a light of hope in the dairy sector and even more so in the primary production that comes with a backlog significant of the price received for milk with respect to the relative prices of the inputs of production (dollar, soy, oil, grains).
But at the time of analysis of the reality we observe that there is little milk in Argentina and no one is going to neglect the domestic market at a rate of 209 equivalent litres/hab/year consume 84% of the production, so that you would possibly keep the level of export current (16% of what is produced) during the rest of the year:
Obviously that 16% exported to get a better price going to improve the price to the producer, but it will be at a pace managed by the processing industry that is comfortable -in competition neutra - since march 2017 when one of the large companies in argentina, Sancor, came out of the market. Until it is resolved the sale of Sancor and your back to find the milk loss, nobody seems willing to tugging on the blanket that turns out to short to cover the needs of all.