ARGENTINA – A milk powder delivery has been confirmed for Saudi Arabia by an expanding dairy processor in Entre Rios after a period of steady improvement for dairying.
The news marks an important juncture for Cremigal, a family run dairy foods company in General Galarza, in the north east of the country.
The confirmation of two containers of powdered milk to the Middle East is being hailed on a national level and a signal, the government says, that Argentinian value added products are in demand.
The announcement comes after a mixed 2013 which saw dairying conditions improve after a year on year production contraction of almost 10 per cent from January to April.
First quarter difficulties led to dairy shipments dropping 25 per cent, with Whole Milk Powder and Cheese the worst hit.
Improvements in moisture, temperature and farm gate prices offered more profitability through the year and allowed production to expand in line with Rabobank predictions.
The Ministry of Agriculture has received plaudits and was proud to announce the growth of dairy exports to neighbours Brazil and Venezuela and nations further afield, like China, Russia and Algeria.
Undersecretary for dairy, Arturo Videla outlined a ten year period of steady growth which had seen the company more than double in size.
“In 2002 the company had 45 employees and was processing 90,000 litres per day,” said Mr Videla.
“During 2013, the company worked with 105 employees and processed more than 200,000 litres per day.”
Entrepreneurial efforts to drive trade and government policy to secure a good world standing in food safety were important, he added.
In terms of Cremigal's business going forward, government support is critical for the company, according to Cremigal President Celeste Valenti .
Celeste Valenti thanked the government at a time when the company was entering ‘new stage’ in milk powder products, adding: “We aim to export 100 tons of milk powder and 100 tons of serum a month.”
The country’s exports total for 2013 grosses $1.72 million, around $200,000 higher than last 2012.
Read more of Rabobank's outlook from last year by clicking here.
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