Argentina: Dairy and Products Semi-annual

Argentina's dairy sector is forecast to continue its recovery in calendar year (CY) 2026, with Post projecting milk production at 11.72 MMT, up 2 percent from CY2025, supported by favorable weather, strong pasture conditions, and improved forage availability. Higher milk output is expected to drive growth across major dairy products, with whole milk powder production forecast at 210,000 MT, cheese at 540,000 MT, skim milk powder at 50,000 MT, and butter at 37,000 MT. Exports are also projected to increase, led by whole milk powder, cheese, and skim milk powder, with Brazil remaining Argentina's key export market. Despite improved production conditions, producer margins remain constrained by lower milk prices and elevated input costs.