Monday, October 3, 2022

Milk, on the other hand: dominates a foreign market, continues to close concentrated production and dairy farms

This year marked a change in the processing leadership historically dominated by national companies. Low Livestock Stocks and the Fall of SanCor

By Patrick Elisegui

09/08/2022 – 11,45hs

Milk, on the other hand: dominates a foreign market, continues to close concentrated production and dairy farms

Consistent with the trend of recent years, the dairy business in Argentina is moving towards concentration and the trend of closure continues drum of the last two decades. From 2021 to this part only Operation of 370 establishments stopped And livestock stocks are down 30 percent compared to the 2010s. The number of dairy cows distributed is up to 1.5 million copies and the total number of operating dairy farms exceeds 10,000, although 400 of these enterprises are concentrated at about 25 percent. Total production of milk and derivatives.

These data are part of the most recent report from the Observatory of the Argentine Milk Chain (OCLA), which showed as a further innovation that Canada’s Saputo ranks first On the payroll of the companies processing the highest number of liters of milk. Behind the North American company is Mastelone, the historical leader in the segment, followed by Villainer-Ilole, Punta del Agua, Noel SA, Adecoagro and Nestlé.

as he was able to verify iProfessional, SanCor recently ranked 12th among most processing firms, Milkcott, Corlassa, Traeger and Veronica are some of the companies that outperform a consortium of cooperatives.

Dairy business: how much milk is processed

In terms of volume, Saputo receives over 3.78 million liters of milk per day, while Mastellone receives around 3.45 million. SanCor barely exceeds 533,000. Canada today ranks highest in terms of cheese exports and is also a major player in the sale of powdered milk overseas. In addition to its similarly named label, Saputo markets its products through brands such as Molfino, Ricrem and La Paulina.

“In Argentina, the average industrial turnover in the analyzed period it was u$s0.62/liter of milk, much better than the same period last year, is not explained by a real correction but by a fundamentally strong exchange delay. For example, this price is close to US$1.00 per liter of milk (IFCN) for the world’s top 20 ranking of dairy industries.”

“In the top 10 industries, 36% of the production received is in the hands of multinational companies (along with its parent companies in other countries),” he says.

Milk, on the other hand: dominates a foreign market, continues to close concentrated production and dairy farms

Consistent with the latter, the observatory suggests that the cooperative system for obtaining milk represents less than 5 percent of the market today,

“In 1994, it received 35 percent of the country’s milk (about 50 percent of the milk in the world’s main dairy countries is controlled by cooperatives). It should be noted that, as a primary production sector, cooperatives in Argentina Concentrates account for about 25 per cent of the total milk production,” the report said.

Milk in Argentina: what happens to dairy farms

OCLA report mentions 10,076 active dairy farms in Argentina With a total of 1.52 million dairy cows. Vs 2021, this year the livestock stock decreased by 49,522 copies and the closure of production units reached 370 establishments.

According to the observatory, the completion rate is in line with the prevailing trend around the world. Outside our country, the index of establishments closing their activities in areas where dairy activity takes place is 4 percent per year.

Barely 400 dairy farms produce About 25 percent of the milk produced in Argentina per dayOne.

Jorge Giroudo said, “Concentration is going to accelerate in the coming years due to economic conditions and the policies of the sector. Problems of profitability and the measures being implemented by the government have made it more complicated for the boys.” Executive Director of OCLA.

SanCor is still out

SanCor still rounds out the “top ten” of top milk processors.

Then to conclude: “For Argentina to improve its productive efficiency, it is necessary to invest. But that needs moneyWhich are those dairy farms which do not have enough economic resources to meet their needs”.

Nation World News Desk
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