Concentrated sweetened milk and cream market in Panama

Earlier Report Observations

The market for concentrated sweetened milk and cream in Panama experienced significant volatility between 2018 and 2020, with volume dropping from 2,601 t to 1,295 t. In 2020, the implementation of international commercial and sanitary evaluation parameters improved the competitiveness of the local dairy sector, facilitating increased exports which reduced domestic availability despite sustained growth in national milk production.

Market volume recovered steadily from 2021 onward, reaching 2,237 t by 2023. Financial support programs for grade C milk producers, offering incentives of up to 0.10 balboas per liter sold to processing plants, bolstered local output. In 2023, the application of a special agricultural safeguard on imported fluid milk under the trade promotion agreement with the United States protected domestic manufacturers, while Industrias Lácteas S.A. solidified its role as a major certified player in the local and export market.

Entering 2024, continued fiscal incentives for grade C milk producers and the enforcement of updated sanitary and labeling regulations by the Panamanian Food Safety Authority shaped the operating environment. Consumer health concerns regarding high calorie and fat content prompted industry adaptations, including the launch of reduced-fat product variants.

Production concentrated sweetened milk and cream in Panama

In kind, 2017-2020, t

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

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

Panama's production of concentrated sweetened milk and cream rebounded in 2020 after two consecutive years of decline. The country produced 1 434 tonnes, marking a 17.5% increase compared to 2019. However, looking at the broader period from 2017 to 2020, production actually fell by 47.9%, which translates to an average annual decline of 19.5%. The lowest production level was recorded in 2019 at 1 220 tonnes, with that year also seeing the steepest drop of 54.6%.

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

In value, 2017-2020, K $ US

In 2020, the value of concentrated sweetened milk and cream production in Panama reached 4 070 thousand US dollars, showing a robust year-over-year growth of 20.5%. Despite this recent gain, production value decreased by 53.3% over the 2017-2020 period, with a compound annual growth rate of -22.4%. The minimum value was 3 377 thousand US dollars in 2019, while the peak occurred in 2018 at 8 822 thousand US dollars. The most significant decline happened in 2019, when values fell by 61.7%.

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

Exports concentrated sweetened milk and cream from Panama

Exports in kind, t

Export volumes of concentrated sweetened milk and cream from Panama showed considerable volatility during this period. The market reached its lowest point in 2019 at 42.1 tonnes and peaked in 2017, creating a 17-fold difference between these extremes. In 2020, exports rebounded sharply to 513.1 tonnes, representing an extraordinary 1,118.3% increase compared to the previous year. The most substantial decline occurred in 2019, when exports dropped by 82.7%.

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

From 2017 to 2020, Costa Rica, Nicaragua, and El Salvador were Panama's primary export markets for concentrated sweetened milk and cream in volume terms. Costa Rica accounted for 40.9% of exports, Nicaragua for 23.5%, and El Salvador for 14.9%. Together, these three countries represented 79.4% of Panama's total export flows during this period.

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

Export values exhibited significant fluctuations throughout the observed years. The market hit its lowest point in 2019 at 117 thousand US dollars and peaked in 2017, showing a remarkable 19-fold difference between these two years. In 2020, export values surged to 1 456 thousand US dollars, marking a dramatic 1,149.1% increase year-over-year. The most pronounced decline occurred in 2019, when values fell by 85.4%.

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

During the 2017-2020 period, Costa Rica, Nicaragua, and El Salvador remained Panama's key export markets for concentrated sweetened milk and cream in value terms. Costa Rica represented 38.0% of export value, Nicaragua 26.1%, and El Salvador 14.3%. Collectively, these three markets accounted for 78.4% of Panama's total export value in this category.

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

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

Imports concentrated sweetened milk and cream to Panama

Imports in kind, t

Panama's imports of concentrated sweetened milk and cream grew for the second consecutive year in 2020, reaching 373.9 tonnes—a 53.4% increase compared to 2019. Over the broader 2017-2020 period, imports expanded by 100.6%, equivalent to an average annual growth rate of 26.1%. The lowest import volume was recorded in 2018 at 157.4 tonnes, which also saw the largest decline of 15.5%. The most significant increase occurred in 2019, when imports rose by 54.9%.

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

Between 2017 and 2020, the United States, Peru, and Mexico were the main sources of Panama's imports of concentrated sweetened milk and cream in volume terms. The United States contributed 36.8% of imports, Peru 22.7%, and Mexico 19.5%. Together, these three countries supplied 79.0% of Panama's total import volume in this category.

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

Import values demonstrated notable volatility during the observed period. The market reached its lowest point in 2018 at 419 thousand US dollars and peaked in 2020, showing a 3.1-fold difference between these years. In 2020, import values jumped to 1 289 thousand US dollars, representing a substantial 109.4% increase compared to the previous year. The most significant decline occurred in 2018, when values decreased by 20.9%.

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

From 2017 to 2020, the United States, Mexico, and Peru were Panama's primary sources of concentrated sweetened milk and cream imports in value terms. The United States accounted for 40.8% of import value, Mexico for 20.6%, and Peru for 17.0%. Collectively, these three countries represented 78.4% of Panama's total import value in this category.

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

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