Concentrated milk and cream market in Central America

Earlier Report Observations

The Central American market for concentrated milk and cream saw its volume adjust between 2018 and 2023, initially influenced by the region's evolving trade landscape. The final stage of tariff elimination for sensitive dairy products, including concentrated milk and cream, under the CAFTA agreement reached 0% in 2020. This change reduced trade barriers, supporting a recovery in market volume after a dip in 2019.

Subsequent growth was bolstered by the adoption of advanced production technologies, such as smart milking systems, which enhanced efficiency and output from 2021. The industry's ongoing strategy to diversify its product range, including offerings like flavored milk powders and infant nutrition products, helped align with shifting consumption patterns and sustain market activity.

Following a slight contraction in 2022, the market volume expanded again to 233 thousand tons in 2023, driven by a rebound in domestic production. The overall trajectory reflects a market adapting to regional integration and technological modernization within the dairy sector.

Production concentrated milk and cream in Central America

In kind, 2017-2020, K t

Top producers of concentrated milk and cream, 2017-2020

World map of production of concentrated milk and cream, 2017-2020

In 2020, Central America produced 228.5 thousand tons of concentrated milk and cream, marking a 3.4% increase compared to 2019. Over the period from 2017 to 2020, production grew by 4.7%, which translates to an annualized growth rate of 1.5%. The most significant decline occurred in 2019, when production fell by 0.4%.

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

Exports concentrated milk and cream from Central America

Exports in kind, t

Exports of concentrated milk and cream from Central America have increased for the third consecutive year. In 2020, export volumes reached 32 789 tons, showing a substantial rise of 31.4% compared to the previous year. From 2017 to 2020, exports surged by 139.4%, corresponding to an annualized growth rate of 33.8%.

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

Between 2017 and 2020, the United States and Cuba were the primary destinations for Central America's concentrated milk and cream exports in kind, together accounting for 56.6% of total export flows.

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, K $ US

Foreign supplies of concentrated milk and cream from Central America have increased for the third year in a row. In 2020, export value stood at 62 813 thousand US dollars, representing a significant increase of 46.3% over the past year. Over the 2017-2020 period, exports grew by 137.3%, with a compound annual growth rate (CAGR) of 33.4%.

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

From 2017 to 2020, the United States and Cuba together accounted for the largest share of exports in value terms, making up 55.7% of total export flows.

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 concentrated milk and cream to Central America

Imports in kind, t

After a two-year decline, Central America's imports of concentrated milk and cream have increased. In 2020, the region imported 18 684 tons of concentrated milk and cream, showing a sharp rise of 34.0% compared to the previous year. Over the 2017-2020 period, imports grew by 5.5%, with a CAGR of 1.8%. The lowest import volume was recorded in 2019 at 18 684 tons, which also saw the largest decline of 16.8%.

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

Between 2017 and 2020, imports in kind of concentrated milk and cream to Central America were not heavily concentrated. Chile, with 24.4% of imports in kind, the Netherlands at 8.5%, and the United States at 7.1%, together captured only 40.0% of total import flows.

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, K $ US

Central America's imports of concentrated milk and cream have increased for the second consecutive year. In 2020, the region imported 45 498 thousand US dollars worth of concentrated milk and cream, representing a modest year-on-year increase of 6.8%. From 2017 to 2020, imports grew by 6.2%, equating to an annualized growth rate of 2.0%. The lowest import value was recorded in 2018 at 40 280 thousand US dollars, which also experienced the largest decline of 6.0%.

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

In the 2017-2020 period, Chile, with 20.9% of imports in value terms, New Zealand at 9.2%, and the United States at 8.3%, formed the largest group of suppliers of concentrated milk and cream to Central America. However, their combined contribution was limited to 38.4% of total imports in value terms, reflecting a diversified country structure.

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

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