Butter, dairy spreads and milk fats market in Central America

Earlier Report Observations

From 2018 to 2019, the Central American butter and milk fats market grew significantly, reaching 135 thousand tons in 2019. This expansion was facilitated by import measures in Honduras, where authorities authorized dairy import quotas to prevent shortages and speculation, and free trade agreements allowed duty-free entry of products like butter and cheese.

Market volume contracted to 100 thousand tons in 2020 but recovered in the following years. By 2022, a supply crisis in Costa Rica's dairy industry, marked by butter shortages, coupled with Honduras' approved import contingents for milk fats, spurred higher imports and lifted the market to 118 thousand tons.

In 2023, the market surged to 143 thousand tons as butter supply issues in Costa Rica continued, necessitating substantial imports. For 2024, low domestic milk production in Honduras, driven by climatic factors and farmer shifts to other crops, maintained the reliance on imported dairy fats to meet regional demand.

Production butter, dairy spreads and milk fats in Central America

In kind, 2017-2020, t

Top producers of butter, dairy spreads and milk fats, 2017-2020

World map of production of butter, dairy spreads and milk fats, 2017-2020

Central America's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2020, the region produced 97 119 tonnes, up 1.3% from 2019. Looking at the period from 2017 to 2020, production rose by 6.9%, which translates to an average annual growth rate of 2.2%.

Annual dynamics of production in Central America in kind, 2017-2020, t

Exports butter, dairy spreads and milk fats from Central America

Exports in kind, t

Export volumes showed significant fluctuations during this period. In 2019, exports peaked at 11 027 tonnes, but then dropped sharply to 2 635 tonnes in 2020—a decline of 76.1% from the previous year. This represents a 4.2-fold difference between the high in 2019 and the low in 2020. The largest increase occurred in 2019, with a jump of 44.9%.

Annual dynamics of product's exports from Central America in kind, 2017-2020, t

From 2017 to 2020, the United States was the main destination for exports in volume terms, accounting for 77.8% of total flows. Other markets played a smaller role in the export structure.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Central America in kind, 2017-2020

Exports in value, M $ US

Export values experienced considerable volatility. In 2019, they reached a high of 64.7 million US dollars, but fell to 10.5 million US dollars in 2020—a steep drop of 83.8% year-on-year. This resulted in a 6.2-fold gap between the peak in 2019 and the trough in 2020. The biggest increase was recorded in 2018, at 21.8%.

Annual dynamics of product's exports from Central America in value, 2017-2020, M $ US

During 2017–2020, the United States dominated export flows in value terms, capturing 82.2% of the total. The remaining share was distributed among other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Central America in value, 2017-2020

Imports butter, dairy spreads and milk fats to Central America

Imports in kind, t

Import volumes were highly unstable over these years. In 2019, imports hit a peak of 50 428 tonnes, but plunged to 5 746 tonnes in 2020—a sharp decrease of 88.6% compared to the previous year. This created an 8.8-fold difference between the high in 2019 and the low in 2020. The largest increase was seen in 2018, with a surge of 193.8%.

Annual dynamics of product's imports to Central America in kind, 2017-2020, t

Between 2017 and 2020, New Zealand was the leading source for imports in volume terms, making up 71.0% of total flows. Various smaller destinations accounted for the rest.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Central America in kind, 2017-2020

Imports in value, M $ US

Import values also showed high volatility. In 2019, they peaked at 297.1 million US dollars, then dropped to 33.0 million US dollars in 2020—a decline of 88.9% from a year earlier. This resulted in a 9-fold gap between the high in 2019 and the low in 2020. The largest increase occurred in 2018, with a rise of 223.0%.

Annual dynamics of product's imports to Central America in value, 2017-2020, M $ US

From 2017 to 2020, New Zealand consistently accounted for 72.9% of total import value, highlighting a strong reliance on this market. Other countries shared the remaining portion.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Central America in value, 2017-2020