Updated Jan 10, 2023 16:10

Ghee Market in Argentina

Market Overview
In , the Argentinian ghee market decreased by -% to $ for the first time since 2019, thus ending a two-year rising trend. In general, consumption, however, recorded a significant expansion. Ghee consumption peaked at $ in 2015; however, from 2016 to , consumption failed to regain momentum.

In value terms, ghee production reduced to $ in estimated in export price. Overall, production showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2010 with an increase of % against the previous year. Over the period under review, production reached the maximum level at $ in 2011; however, from 2012 to , production remained at a lower figure.


Consumption
After two years of growth, consumption of ghee decreased by -% to tons in . Over the period under review, consumption, however, recorded significant growth. Over the period under review, consumption hit record highs at tons in , and then fell notably in the following year.

The size of the ghee market in Argentina fell rapidly to $ in , reducing by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, enjoyed significant growth. Ghee consumption peaked at $ in 2015; however, from 2016 to , consumption remained at a lower figure.


Market Forecast
Driven by increasing demand for ghee in Argentina, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to tons by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, the share of imports in terms of total ghee consumption in Argentina was relatively small in physical terms, fluctuating under an less than % figure. In value terms the share of imports also stood at a low figure, which means that the Argentina ghee market is largely supplied by domestic manufacturers. In , the share of imports in total consumption accounted for less than % in value terms and less than % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Argentina remains a net exporter of ghee; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of tons, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.