Livestock monitor | 2023 campaign

Argentine Livestock Review 2023: Why Milk Production Has Stagnated for 30 Years, How Much Meat Was Produced and Consumed, and How Much Was Exported. May 2024 Report.

 

In 2023, 11.325 billion liters of raw milk were produced, 2% less than in 2022. Production has remained stagnant between 10 and 12 billion liters for approximately 30 years. Productivity per cow has increased; however, the number of dairy farms and their total herd size are showing a downward trend.

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Milk production has stagnated for 30 years

Primary production in millions of liters per year. From 1983 to 2023.

Primary milk production in Argentina, in millions of liters per year, from 1983 to 2023, with the average of each period

According to data published by the current Ministry of Bioeconomy , information on primary production is available from 1983 to the present. While a new measurement methodology was established in 2015 that prevents direct comparison of the two series, we can observe the following: first, in the 80s, production ranged between 5500 and 6500 billion liters; then, during the 90s, changes in national economic policy fostered investment and technological advancements in the sector, allowing for year-on-year production increases and reaching a new production frontier; in 1999, production reached 10300 billion liters annually, which is the simple average of the following 25 years.

The industry is obviously part of the problem, and large processors are also facing a crisis. Investments made since the turn of the century have not been profitable, and many have had to be abandoned. Milk processing facilities are very expensive, and when they cannot receive the necessary amount of raw milk to keep them operational, costs skyrocket.

Dairy consumption and exports

Regarding dairy consumption by Argentinians, it has shown an upward trend since 2019, reaching 192,8 liters per capita annually. The 2,6% increase compared to the previous year is partly explained by the fact that retail prices for dairy products have increased below the average measured by the Consumer Price Index (CPI).

Annual per capita consumption in liters equivalent. From 2017 to 2023.

Annual consumption of dairy products per capita in Argentina, in equivalent liters, from 2017 to 2023: 192,8 liters in 2023

Exports of powdered milk fell by 30% compared to 2022, while those of cheese increased by 40%, mainly driven by the international price of mozzarella cheese.

Meat: slaughter, consumption and exports

Cattle slaughter increased by 7,5%, representing a production of 3,3 million tons. However, as the culling of breeding stock continues, this increase will not be sustainable in the long term. Poultry production has remained stable in recent years, while pork production continues its upward trend.

Bovine herd and % of females at slaughter. From 2007 to 2023.

Cattle herd in millions of head and percentage of females in slaughter in Argentina, from 2007 to 2023

Domestic meat consumption has increased compared to the previous year due to higher beef consumption. However, in recent years, a shift from beef to pork has been observed. The average Argentinian consumed 52 kg of beef, 46 kg of chicken, and 17 kg of pork in 2023.

Annual per capita consumption of meat in kg. From 2017 to 2023.

Consumption of beef, chicken and pork per capita in Argentina, in kg per year, from 2017 to 2023

Beef exports are establishing a new floor of between 800 and 900 tons, primarily due to greater complementarity in export cuts and lower domestic demand compared to historical averages. Combined with poultry, exports exceed one million tons, valued at US$2800 billion.

Open access, for use and citation

The report is available freely and without charge, under a Creative Commons license (CC BY 4.0):

Monitor Ganadero – Campaña 2023. Informes del Observatorio UNR N.º 64 — Serie Informes de Coyuntura N.º 24, mayo de 2024. ISSN 2683-9067 / 2683-9075. Autores: Alfredo O. Bula, Rolando V. Gonzalez y Germán A. Tessmer.