Argentine is the 2nd. Milk producer of Latin America .

National production grew slowly through XX century, but on the last decade and due to economical stability, growth index reached 7,2% cummulative annual, from 5.937 millions litres on 1991 to 10.329 millions on 1999.

Since year 2000 and as a consequence of a very severe crisis that affected the whole milk chain, production decreased to 9.794 million litres drop again on 2001 to 9.475 millon litres (3.48% less than 2000) as shown in the graphic bellow. On year 2002, only 8.529 millions litres of milk were produced, and in year 2003, national milk production was 7.975 millions litres.

On the next graphic it can be seen the milk reception's evolution on main industries –as a production index. Year 2002's drop is notorious, even higher on 2003.

It is important to highlight that milk production cummulate for 2004 first half is 20.2% more than same period last year.

NATIONAL MILK PRODUCTION ESTIMATED

Unlike other economical activities that are much more concentrated, argentine milk production is spread, both in its primary level as in its secondary one, mainly in the provinces of Buenos Aries, Cordoba and Santa Fe , that withold 94.4% of the production. Main milk providers are placed onto the provinces of Santa Fe , Cordoba 's center and south east and Buenos Aries west.

MILK RECEPTION EVOLUTION MAIN INDUSTRIES

According to provincial reports and milk industry sources, it is possible to estimate that by 2002 ends there were around 1,5 millon milk cows (in production), this is an average of more than 140 cows per farmer (with an annual production of more than 4.000 milk litres/cow).

Farmer's current amount is the result of a concentration and specialization process of the milk industry that started at beginning ‘70's decade. Twenty five years ago, argentine dairy farms produced an average of 200 milk litres per day, and now this amount is almost 1700 litres. As shown on next graphic, from Secretaría de Agricultura, Ganadería, Pesca y Alimentos (SAGPyA) source, if the main factor that explains the drop in production is dairy farms number reduction, however dairy farms has increased their productivity. At the present, they are delivering 25% more milk than the same perios of last year.

MILK RECEPTION, DAIRY FARMS Nº & DELIVERIES FARMER/DAY

Though it's hard to characterize the “Argentinean average farmer”, the most common model in the main country's milk provider provinces ( Central Santa Fe zone and Cordoba ) has 250 hectareas or less, from wich 85% are for cattle use and the rest for agriculture, with 35% of the surface rented. Feeding system is pasture, mainly with alfalfa and it supplements with a high use of hay and food extract, that makes it different from other net pasture systems, like New Zealand , and also from North hemisphere systems

An important characteristic of Argentine milk production systems, and that distinguishes it from the production models in other countries, is the high chance of replacement between agricultural activities that compete among themselves for soil use, such as meat and grains production. As a consequence, milk offer variety increases, responding not only to price connection between raw material and product, but also to price relation with other competitive products.