Argentina improves, but still below last year’s levels.

Argentina has registered in October a significant recovery compared to September with a month-on-month increase of 4.3%, but in the annual accumulated the drop in primary production is -8.5%.

Official data from the Dirección Nacional de Lechería (DNL) estimate that the final two months of the year will also be better than the closing of 2023, but that the annual balance may mean a total fall of between 6 or 7%.

The red numbers shown by dairy farms in the country have not been directly reflected in exports due to the sharp drop in domestic consumption in a year of economic recession that greatly affected consumers’ pockets.

Uruguay continues to fall in October

In Uruguay, the month of October was negative in terms of industrial remission compared to the same month last year by 1%. With this record, from January to October 2024 the decrease is 4.2% when compared to the first 10 months of last year.

The main concern of the Uruguayan dairy industry is that in the month the drop in solids was much deeper than the drop in liters shipped. Last October, 16.3 million kg (fat + protein) were processed, a drop of 3% versus the same month last year.

The drop in local production is accompanied by a fall in export revenues, which, although maintaining significant volumes of shipments, especially to Brazil and Algeria, has seen a decrease in the price received for the exported products.

In October 2024, Uruguay’s dairy export revenue recorded a 2% drop compared to the same month of the previous year, reflecting the decrease in the prices of the main exported products, according to the report of the Instituto Nacional de la Leche (INALE).