Argentine dairy sector reports $56.4 billion loss in August

The Argentine dairy chain recorded an estimated loss of $56,399 million in August, according to the Observatorio de la Cadena Láctea Argentina (OCLA). While milk production increased by 4.5% between January and August compared to the previous year—reaching 7,515 million liters—the sector faces significant economic challenges.

The financial imbalance is split between the primary sector and the industry. The primary sector reported a negative result of $79,634 million, while the industrial sector saw a positive result of $23,235 million.

Data indicates a gap in production costs; the average price paid to producers was $535.12 per liter, whereas the reference price required to cover long-term production costs was $615.16 per liter, representing a deficit of approximately $80 per liter.