Argentina: dairy products consumer price index, by region 2016-2024

Argentina's dairy industry is experiencing significant price volatility, with the Consumer Price Index (CPI) for dairy products in the Greater Buenos Aires region reaching 9372.6 in November 2024. This marks a dramatic increase from 3115.2 just a year earlier, highlighting the rapid inflation affecting the sector. The surge in dairy prices is part of a broader trend of rising food costs across the country, impacting consumers and the industry alike.

While the Greater Buenos Aires region leads in dairy product CPI, other regions are also experiencing substantial increases. For instance, the Pampeana region saw its bread and cereals CPI rise to 8405.1 in November 2024, up from 3247.2 the previous year. These price hikes are occurring despite the relatively stable milk consumption volume. In 2022, Argentina's milk consumption reached 11.9 million metric tons, with a slight increase to 12 million metric tons projected for 2023.

Despite the challenging economic environment, some dairy brands have maintained strong consumer loyalty. In 2023, La Serenísima led the market, followed by La Paulina and Ilolay. However, the industry faces headwinds, as evidenced by the industrial production index (IPI) for dairy products, which stood at 127.5 points in August 2024, representing a 6.6 percent decrease from the previous year. This decline in production, coupled with rising prices, suggests potential challenges for both consumers and producers in the Argentine dairy market.