Butter, dairy spreads and milk fats market in Panama

Earlier Report Observations

From 2018, the dairy sector in Panama faced a decline in milk producers and a negative trend in milk output, creating challenges for the local supply of butter and milk fats. Trade policies and customs regulations also impacted dairy imports during this period. Despite these constraints, the total market volume grew to 14 351 t in 2019. The COVID-19 pandemic affected the dairy industry in 2020, leading to a slight contraction in consumption and a market size of 14 127 t.

Market volume expanded sharply to 16 612 t in 2021, supported by agreements to extend subsidies to the milk chain finalized in mid-2022, which helped offset ongoing declines in dairy cattle numbers and low milk productivity per cow. In 2022, adverse climatic conditions and government regulations on butter production and distribution limited growth, pulling the market down to 16 026 t. By 2023, structural difficulties in the livestock sector, including a further reduction in dairy herds, continued to restrain local production, yet the market stabilized at 16 169 t, partly due to rising consumer preference for non-perishable dairy items like butter for household consumption.

In 2024, Panama hosted the 17th Pan-American Milk Congress, highlighting innovation and sector development, while persistent climatic factors and low productivity remained key challenges regulating butter and milk fats production and consumption.

Production butter, dairy spreads and milk fats in Panama

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

Panama's production of butter, dairy spreads, and milk fats has increased for the second consecutive year. In 2020, production remained virtually unchanged year-over-year at 11 824 tonnes. Between 2017 and 2020, production grew by 10.7%, which translates to an annualized rate of 3.5%. The lowest production level was recorded in 2018 at 10 498 tonnes, marking a decline of 1.7% that year. In contrast, the largest increase occurred in 2019, with production rising by 12.1%.

Annual dynamics of production in Panama in kind, 2017-2020, t

In value, 2017-2020, K $ US

Panama's production of butter, dairy spreads, and milk fats in value terms has declined for the second consecutive year. In 2020, the output was valued at 55 264 thousand US dollars, representing a reduction of 12.3% compared to the previous year. Over the period from 2017 to 2020, production decreased by 8.5%, with a compound annual growth rate of -2.9%. The highest value was recorded in 2018 at 63 162 thousand US dollars, which saw an increase of 4.6% that year.

Annual dynamics of production in Panama in value, 2017-2020, K $ US

Exports butter, dairy spreads and milk fats from Panama

Exports in kind, t

Market performance showed noticeable fluctuations during the period. Exports bottomed in 2017 and peaked in 2018, with an 8.6-fold difference between these years. In 2020, Panama's exports of butter, dairy spreads, and milk fats stood at 13 tonnes, reflecting a sharp uptick of 106.6% year-over-year. The maximum export volume was recorded in 2018 at 17 tonnes, which experienced the largest increase of 757.8% that year. The largest decline occurred in 2019, with exports falling by 63.6%.

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

From 2017 to 2020, the United States, Colombia, and Jamaica emerged as the main markets for Panama's exports in kind. The United States accounted for 60.1% of exports, Colombia for 10.8%, and Jamaica for 4.0%. Together, these three countries represented 74.8% of total export flows.

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

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

Exports in value, K $ US

Market performance exhibited noticeable fluctuations during the period. Export volumes sank to their lowest in 2017 and peaked in 2018, with a top-to-bottom ratio of 9.1 times. In 2020, Panama's exports of butter, dairy spreads, and milk fats reached 61 thousand US dollars, corresponding to an advance of 80.3% versus the previous year. The maximum value was recorded in 2018 at 105 thousand US dollars, which saw the largest increase of 812.6% that year. The largest decline occurred in 2019, with exports dropping by 67.6%.

Annual dynamics of product's exports from Panama in value, 2017-2020, K $ US

From 2017 to 2020, the United States, Colombia, and Jamaica were the primary destinations for Panama's exports in value terms. The United States absorbed 60.0% of exports, Colombia 11.9%, and Jamaica 3.6%. Collectively, these three markets accounted for 75.5% of total export value.

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

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

Imports butter, dairy spreads and milk fats to Panama

Imports in kind, t

Market performance displayed noticeable fluctuations during the period. Import levels reached their low in 2017 and their high in 2018, varying by 1.8 times between these years. In 2020, Panama's import volume of butter, dairy spreads, and milk fats was recorded at 2 316 tonnes, down by 10.6% compared to the previous year. The maximum import volume was in 2018 at 3 214 tonnes, which experienced the largest increase of 75.2% that year. The largest decline occurred in 2019, with imports falling by 19.4%.

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

Between 2017 and 2020, New Zealand and the United States jointly absorbed 82.0% of Panama's total imports in kind of butter, dairy spreads, and milk fats. The remaining volume was distributed across smaller markets.

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

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

Imports in value, K $ US

Market performance showed noticeable fluctuations during the period. Imports varied by 1.8 times, from a low in 2017 to a high in 2018. In 2020, Panama imported 12 131 thousand US dollars worth of butter, dairy spreads, and milk fats, equivalent to a robust reduction of 15.9% compared to the previous year. The maximum value was recorded in 2018 at 20 217 thousand US dollars, which saw the largest increase of 83.3% that year. The largest decline occurred in 2019, with imports dropping by 28.6%.

Annual dynamics of product's imports to Panama in value, 2017-2020, K $ US

Throughout 2017 to 2020, New Zealand and the United States were the core markets for Panama's imports in value terms, jointly accounting for 80.2% of total flows. Other destinations had comparatively modest shares.

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

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