The efforts made by the production to maintain the billing in 2023 without maize silage, an extended drought and an unusual deterioration of the relative prices... today we pass bill surpassing all expectations.
With -3.5% less dairy farms in the sample SIGLeA and fewer cows in the dairy farms (estimating -10% less according to testimonies sector), the curve of production maintains the downward trend that started in September last year and accelerated in 2024. The production of milk in march/24 declined to 22.7 million litres per day, marking a historic record in its fall year-on-year with -14.4%, the largest decline year-on-year in 42 years of records. Almost 4 million litres of milk/day, which are not.
This drop in production is observed in almost all the productive basins in the country, with particular incidence in Córdoba (-18%) and Santa Fe (-16.8%) both provinces contribute nearly 70% of the domestic volume. In the next chart, we look at the variation year-on-year in the first quarter of 2024 with respect to the same period in 2023 (the % above the bars correspond to the contribution of the provincial to the national production in each province)
Except for the basin South of Santa Fe (15% of the milk santafecina) that maintains its production slightly above that of 2023, the rest of the dairy basin most important in the country, led by Villa Maria, observed a marked drop in his production:
The evolution of national production is a response multifactorial derived from the technical situation, climate, financial and moods of around 10,000 dairy farms in Argentina. Following the seasonality of the current curve for the following months, possibly this negative trend will remain until late in the spring, closing the year 2024 with a volume of milk -7% -10% lower than the year 2023.
2023 has been a bad year for the whole dairy chain. The industrial sector has lagged improvements in the prices of raw materials, on the grounds that you will substantiate, until this critical point in which is currently the sector, being the primary production which brings to bear 100% of the debts generated in the Chain in the last 12 months (See chart for period mar/23-feb/24).
IAPUCo: Argentine Institute of Teachers College Costs
The response of the primary production is becoming less and less dairy but it is larger, to grow with effort in volume tranqueras inside is what really matters.
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