2/21/2014

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"Dairying in Argentina: cheap milk,… but sustainable?"

Gonzalo Ferreira, PhDDairy Management Extension Specialist

Department of Dairy Science, Virginia Tech

Dairying in Argentina Argentina,… where the South is cold!!!

Dairying in ArgentinaMain Dairy Regions in Argentina

•• Cordoba: 37%Cordoba: 37%•• Santa Fe: 32%Santa Fe: 32%•• Buenos Aires: 25%Buenos Aires: 25%•• Entre Rios: 3.1%Entre Rios: 3.1%•• La Pampa: 1.4%La Pampa: 1.4%•• Other: < 3%Other: < 3%

34°49’ S

Dairying in ArgentinaLandscape

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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2/21/2014

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Dairying in ArgentinaGood Soil

Dairying in ArgentinaTemperate Climate

Dairying in ArgentinaClimate of Grazing Countries

15

20

25

ure, C

0

5

10

15

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mean Tem

paratu

ARG

NZ

IRL

Dairying in ArgentinaNo Tillage

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2/21/2014

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Dairying in ArgentinaNo Tillage

Dairying in ArgentinaConserved Forages

Dairying in ArgentinaWinter Crops

Dairying in ArgentinaSummer Crops

Picture from Nicolas Capelle

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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Dairying in ArgentinaGrazing Efficiency

Dairying in ArgentinaCrop Rotation

Dairying in ArgentinaCrop Rotation

Dairying in ArgentinaFeeding Management

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Dairying in ArgentinaFeeding Management

Dairying in ArgentinaFeeding Management

Dairying in ArgentinaFeeding Management

Dairying in ArgentinaSelf‐service

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Dairying in ArgentinaReplacements

Dairying in ArgentinaReplacements

Picture from Hugo Quattrochi

Dairying in ArgentinaReplacements

Dairying in ArgentinaReplacements

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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Dairying in ArgentinaHeat Stress

Dairying in ArgentinaHeat Stress

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Dairying in ArgentinaHeat Stress

Dairying in ArgentinaRainfalls

200

250

300

350

mm

0

50

100

150

Ene Feb Mar Abr May Jun Jul Ago Sep Oct Nov Dic

Rainfall, m

2011 2012 2013

Dairying in ArgentinaLincoln (Buenos Aires), November 2012

Dairying in ArgentinaLincoln (Buenos Aires), November 2012

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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Dairying in ArgentinaPehuajo (Buenos Aires), November 2012

Dairying in ArgentinaConsequences of Rainfall

Dairying in ArgentinaWaste Management

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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2/21/2014

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Dairying in ArgentinaWaste Management

Dairying in ArgentinaBenchmarking

67.460

70

80

of Milk Sales, %

Period Jul 2011 – Jun 2012

46.7

0

10

20

30

40

50

Southern California Lincoln, ARG

Feed

 Cost as Percentage o

Dairying in ArgentinaMilk Market

• Population: 41 million people

• National milk production: 11,3 billion L/year 

22%22%

78%78%

Local Consumption

Exports

Ministerio de Agricultura Ganadería y Pesca (2013)

2014 Virginia State Feed Association & Nutritional Management "Cow" College

Ferreira | Virginia Tech Dairy Science

2/21/2014

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Dairying in ArgentinaGovernment

• Resolución 61/2007 (February 2007)

– Scenario: low global stocks and high demand

– “… establish mechanisms that insure milk supply in the local market”

– Cut value of U$ 2,100 per tonne of milk powder

– In October 2007, at U$ 4,000 – U$ 4,500 per tonne (FOB), there was >50% export duties!!!

Dairying in ArgentinaGovernment

Dairying in ArgentinaCropping vs. Milking

1,324

2,957

667

4,162

0

1000

2000

3000

4000

5000

Wheat Soybean Corn Dairy

‐10000

‐9000

‐8000

‐7000

‐6000

‐5000

‐4000

‐3000

‐2000

‐1000 Wheat Soybean Corn Dairy

AR$/ha

EBITDA

Operating Expenses

2014 Virginia State Feed Association & Nutritional Management "Cow" College

Ferreira | Virginia Tech Dairy Science

2/21/2014

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Dairying in ArgentinaInfraestructure

Dairying in ArgentinaInfraestructure

Dairying in ArgentinaInfrastructure

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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Dairying in ArgentinaInfrastructure

Dairying in ArgentinaPeople

Dairying in ArgentinaPersonel’s Opinion of Dairying

5%

10%

Workforce Survey: “What do dairying staff like less from their job?” (40 dairies, Region Santa Fe Centro, AACREA)

Mud/Rain

42%

23%

11%

9%Weather (cold/hot)

Working Hours

Lack of Free Days

Calf Care

Others

2014 Virginia State Feed Association & Nutritional Management "Cow" College

Ferreira | Virginia Tech Dairy Science

2/21/2014

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Dairying in ArgentinaLabor

2014 Virginia State Feed Association & Nutritional Management "Cow" College

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2/21/2014

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Dairying in ArgentinaCultural Issues

“… these soldiers have been slaughtering 

cattle from their childhood, and this act of 

necessary cruelty makes them familiar with 

bloodshed and hardens their heart against 

the groans of their victims.” From the book 

Facundo (Domingo F. Sarmiento, 1845)

Dairying in Argentina… If Cows Could Speak!

2014 Virginia State Feed Association & Nutritional Management "Cow" College

Ferreira | Virginia Tech Dairy Science

2/21/2014

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Dairying in ArgentinaSustainability

… waste management?… animal welfare?

THANKS!THANKS!

2014 Virginia State Feed Association & Nutritional Management "Cow" College

Ferreira | Virginia Tech Dairy Science