From the beginning and up to the middle of the century, the Argentine milk industry had a good exporting performance, but since the sixties the sector basically turned on the domestic market supplier. This retreat of Argentina in the world dairy markets was due to the incapacity of the national industry of competing with the heavy exports subsidies and other highly distorting dairy policies. This situation changed radically after 1994-95, with Mercosur and Brasilean market strengthening, when our exports began to grow rapidly, until they reached 216.400 tons in 1999, with a value of 372,6 M U$S.

During 2000 and 2001, as a consequence of national production decrease, exports dropped to 174 y 149 thousands tons each year. Finally during 2002 and despite the drop in production, the strong contraction on domestic market leverage the available stock and exports exceeded once more the amount of 200000 tons of diary products (219.500 tons and 314,4 M U$S). Exchange rate was the main c au se of this rise. In 2003, exports were less than 2002 (170.700 Tons. And 291,5 M U$S).

First half 2004, exports of dairy products grew again, expecting to be about 2,000 billions Lts /dairy equiv. at the end of the present year.

DAIRY EXPORTS

 

As shown in previous graph, along 90's Brazil was the main exchange market for Argentinian dairy products. In those years, around 65-70% of the money obtained from dairy export sales came from that country but this changed after Brasilean's currency (Real) devaluation in January 1999. In 2001 only 44,7% of our foreign sales had that destination, and trend continued in 2002 (36,5%), in 2003 (18,7%) and first half 2004 (17%).

According to this new situation new markets were explored, and as a consequence other markets such as United States , Mexico and Chile , Middle East and some African countries are also important now.

According to above figures, most significant product of our export portfolio is powder milk (2003 about 81% of exports). On the other hand, cheese export lightly exceed the 20.000 annual tons, and is an important issue to international trade. Products known as “ingredients” (WPC, derivate proteins, lactose, etc) have indeed shown in the last years a very dinamic behaviour.

All dairy products exports are above 1% of country's export total figure (1,2% in 2002) and around 4% of agro industrial manufacture (3,8% in 2002)

Dairy products imports are not meaningful in Argentina . After a high number in 1991-93 period, they decreased continuously and today are placed on values equivalent to 50-100 M milk, being cheeses of middle tough kind main import product.