Argentina To Lead Rise In Dairy Output

ARGENTINA - Argentina is to lead dairy exporters on another round of rising world milk production next year, boosted by good weather and high profitability, adding to the competition for import orders – notably from China.
calendar icon 25 November 2011
clock icon 2 minute read

The South American country's dairy sector is next year to continue its recovery from the 2009-10 drought, when 30 per cent of calves died, with farmers attracted by profitability better than that obtained by many arable growers.

"Current returns on soybeans are significantly lower compared to dairy," US Department of Agriculture staff in Buenos Aires said.

"Milk production is forecast to increase further," albeit by 3.8 per cent, behind the 13.1 per cent growth seen this year, which witnessed the bulk of the sector's recovery.

Nonetheless, at 12.45m tonnes, 2012 milk output will hit a record high, up by nearly one-half in a decade.

And, with domestic consumption already high, at 210 litres per capita, much will be surplus to Argentina's own requirements, and "be processed into whole milk powder, which will then be exported", the USDA attaches said in a report.

"Total exports of dairy products are expected to increase significantly in response the anticipated increase in milk production."

Whole milk powder shipments will rise 12.6 per cent to a record 250,000 tonnes, much to other South American countries, but also to the Asian countries which are a battleground for many dairy exporters.

"According to contracts, Argentina's exporting efforts are now geared also towards increasing exports to China and the Asian countries," the briefing said.

The comments follow a round of data showing buoyant recent production in major exporting nations, including the US, where output rose 2.1 per cent last month, from October 2010, boosted by nearly 100,000 extra cows in milk, and a 17-pounds-per-cow rise in productivity.

TheCattleSite News Desk

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