Argentina dairy exports absorb rising milk supply as demand recovers

Argentina dairy exports absorbed most of the country’s additional milk supply in the first five months of 2026, while domestic consumption continued to recover from the sharp decline recorded in 2024.

According to data from the Argentine Observatory of Dairy Chains, known as OCLA, Argentina generated a net additional milk supply of 375 million liters through May. Of that amount, 65% was directed to export markets, while the remaining 35% was absorbed by the domestic market.

The figures point to a stronger export role for Argentina’s dairy industry as production grows and inventories decline. Milk stocks at the end of May were 10.1% lower than a year earlier, equivalent to a reduction of 81 million liters, reflecting firmer demand both abroad and at home.

Domestic consumption rose 4% from the same period in 2025, adding 132 million liters to the local market. The recovery follows a steep contraction in 2024, when consumption fell by about 19.5% in the first five months of the year amid weaker purchasing power.

OCLA said domestic dairy consumption has nearly recovered between 2025 and 2026, although the rebound has been concentrated mainly in lower value-added products.

If the current pace of recovery continues, per capita milk consumption could reach 192.3 liters by the end of 2026, up from 185.3 liters in 2025. A more conservative scenario points to annual consumption closer to 180 liters per person, while OCLA’s reference projection stands near 188 liters.

The performance of demand in the second half of the year will be key to determining which scenario prevails.

For exporters, the data suggest that Argentina dairy exports are playing a central role in balancing higher production, lower inventories and recovering domestic demand. The sector’s ability to maintain external sales while rebuilding local consumption will be important for processors, logistics operators and traders monitoring dairy flows from Argentina.

Source: adapted from Dairy News

Sharing is caring!