Concentrated or sweetened milk and cream market in Honduras

Earlier Report Observations

The market for concentrated or sweetened milk and cream in Honduras showed considerable volatility between 2018 and 2023, with volume swinging from 15 158 t to a low of 10 047 t before recovering to 18 472 t. Early in the period, the market was supported by imports facilitated under free trade agreements like DR-CAFTA, which allowed large volumes of milk powder and dairy derivatives to enter the country with zero tariffs. This import flow helped offset domestic supply issues linked to post-election political disruptions and initial efforts to modernize cattle herds through genetic improvement.

From 2020 onward, domestic milk production faced repeated pressures. A significant economic downturn impacted the dairy sector, while the rising cost of concentrated feed and other inputs constrained output. In subsequent years, adverse weather conditions, particularly a lack of rainfall, led to estimated production losses of 30–40%, sharply reducing the daily milk supply. To cover the shortfall, import volumes were increased substantially, which drove the market's recovery in 2022 and 2023. Legislative and policy changes were also enacted to streamline imports and enhance product traceability.

Concurrently, the industry saw incipient digitalization of production, collection, and administrative processes to improve efficiency at milk cooling centers. Changes in consumer preferences and the entry of more companies importing milk powder for processing further shaped the market structure. Despite the challenges in local production, the reliance on imports under favorable trade terms enabled overall market volume to expand over the full period.

Production concentrated or sweetened milk and cream in Honduras

In kind, 2017-2020, t

Top producers of concentrated or sweetened milk and cream, 2017-2020

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

In 2019, Honduras produced 2,286 tons of concentrated or sweetened milk and cream, marking the lowest output in recent years. Production then surged by 52.4% in 2020 to reach 3,484 tons. Over the period from 2017 to 2020, overall production grew by 52.3%, which translates to an average annual increase of 15.1%.

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

In value, 2017-2020, K $ US

Concentrated or sweetened milk and cream production in Honduras increased for the third consecutive year. In 2020, the output was valued at 4,262 thousand US dollars, representing a sharp gain of 50.6% compared to 2019. From 2017 to 2020, production rose by 51.2%, equating to an annualized growth rate of 14.8%.

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

Exports concentrated or sweetened milk and cream from Honduras

Exports in kind, t

Concentrated or sweetened milk and cream exports from Honduras declined for the second consecutive year. In 2020, exports reached 1,991 tons, indicating a significant drop of 15.3% compared to the previous year. The highest export volume was recorded in 2018 at 2,359 tons, which saw the largest increase of 12.6%. Over the period from 2017 to 2020, exports decreased by 4.9%, with an annualized decline rate of 1.7%.

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

From 2017 to 2020, Guatemala and El Salvador were the main destinations for Honduras's exports of concentrated or sweetened milk and cream in kind, together accounting for 92.5% of total export flows.

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

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

Exports in value, K $ US

Honduras's exports of concentrated or sweetened milk and cream in value terms declined for the second consecutive year. In 2020, exports amounted to 2,436 thousand US dollars, reflecting a robust drop of 16.3% year-over-year. The maximum value was recorded in 2018 at 2,915 thousand US dollars, which also saw the largest increase of 12.9%. Over the period from 2017 to 2020, exports decreased by 5.6%, with a compound annual growth rate of -1.9%.

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

In the period from 2017 to 2020, Guatemala and El Salvador remained the dominant destinations for Honduras's exports of concentrated or sweetened milk and cream in value terms, jointly accounting for 92.0% of total export flows.

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

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

Imports concentrated or sweetened milk and cream to Honduras

Imports in kind, t

The import market for concentrated or sweetened milk and cream in Honduras showed volatility over the observed period. In 2017, imports hit a low of 5,441 tons, then surged to a peak of 15,229 tons in 2018, representing the largest increase of 178.1%. Imports declined by 33.6% in 2019, the largest drop, before rising again by 13.8% in 2020 to reach 11,509 tons. Overall, import levels fluctuated 2.8 times between the high of 2018 and the low of 2017.

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

From 2017 to 2020, the United States (48.9% of imports in kind), Costa Rica (9.9% of imports in kind), and New Zealand (7.3% of imports in kind) were the main sources for Honduras's imports of concentrated or sweetened milk and cream in kind, with a combined share of 66.1% of total import flows.

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

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

Imports in value, K $ US

The import market for concentrated or sweetened milk and cream in Honduras exhibited an unstable trend throughout the timeframe. In 2017, imports reached a trough of 15,242 thousand US dollars, then peaked in 2018 at 33,533 thousand US dollars, showing the largest increase of 122.5%. Imports declined by 20.0% in 2019, the largest drop, before increasing by 10.3% in 2020 to 29,591 thousand US dollars. The period registered a 2.2-fold difference between the peak in 2018 and the trough in 2017.

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

Over the period from 2017 to 2020, the United States (41.7% of imports in value terms), Costa Rica (18.5% of imports in value terms), and Nicaragua (11.1% of imports in value terms) remained the leading sources for Honduras's imports of concentrated or sweetened milk and cream in value terms, with a combined share of 71.3% of total import flows.

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

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