Milk and cream market in Central America

Earlier Report Observations

Between 2018 and 2020, the Central American milk and cream market grew steadily, primarily due to increasing urbanization which shifted consumer preferences toward safer, pasteurized dairy products. The COVID-19 pandemic in 2020 further bolstered household demand for staple foods like milk, even as supply chains faced temporary disruptions.

From 2021 to 2023, government policies sustained market expansion. Panama's financial incentives for dairy producers raised output, while its school nutrition program, which distributed fortified milk and cream, directly boosted consumption. In El Salvador, the closure of milk reconstitution plants aimed to protect local production, and the AgroMercados retail expansion improved affordability and access to dairy products.

Regulatory adjustments under the CAFTA trade agreement and ongoing sector campaigns to promote authentic milk over substitutes also supported market growth during these years, despite challenges such as social protests in Panama affecting milk collection and rising input costs.

Production milk and cream in Central America

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

Milk and cream production in Central America has grown for the third year in a row. In 2020, the region produced 18 538 thousand tonnes, marking a 2.7% increase from 2019. Over the 2017-2020 period, production rose by 6%, with an average annual growth rate of 2.0%.

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

In value, 2017-2020, M $ US

The value of milk and cream production in Central America has declined for the second consecutive year. In 2020, output was valued at 14 516 million US dollars, down 6.6% from 2019. The highest value was recorded in 2018 at 17 589 million US dollars, which saw a 20.7% increase. The largest decline occurred in 2019, with an 11.6% drop.

Annual dynamics of production in Central America in value, 2017-2020, M $ US

Exports milk and cream from Central America

Exports in kind, t

After two years of decline, Central America's milk and cream exports increased in 2020. Exports reached 75 676 tonnes, up 14.4% year-on-year. The lowest point was in 2019 at 66 171 tonnes, following a 27.5% decline in 2018. Overall, exports fell by 17.5% between 2017 and 2020, equivalent to an annualized decrease of 6.2%.

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

From 2017 to 2020, the Dominican Republic, Venezuela, and the United States remained the top three markets for Central America's milk and cream exports in volume terms, collectively accounting for 24.3% of total 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

Following a two-year drop, the value of milk and cream exports from Central America rose in 2020. Export value reached 59 257 thousand US dollars, a 4.0% increase from the previous year. The lowest value was recorded in 2019 at 56 958 thousand US dollars, after a 14.0% decline in 2018. Between 2017 and 2020, exports decreased by 22.5%, with an annualized rate of 8.1%.

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

Between 2017 and 2020, the Dominican Republic (16.7% of export value), the United States (6.1%), and Venezuela (4.9%) continued to lead as the main buyers of milk and cream from Central America, together representing 27.8% of total export value.

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 milk and cream to Central America

Imports in kind, t

Milk and cream imports into Central America have increased for the second consecutive year. In 2020, imports totaled 81 284 tonnes, up 17.2% from 2019. The lowest volume was in 2018 at 52 403 tonnes, which saw a 6.1% decline. The largest increase occurred in 2019, with a 32.4% rise. Over the 2017-2020 period, imports grew by 45.7%, with an average annual growth rate of 13.4%.

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

From 2017 to 2020, the United States, Spain, and Germany were the three principal sources of milk and cream imports into Central America in volume terms, together making up 14.3% of total imports.

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

The value of milk and cream imports into Central America has risen for the second year in a row. In 2020, imports were valued at 77 805 thousand US dollars, a sharp 28.0% increase from 2019. The lowest value was in 2018 at 59 314 thousand US dollars, which experienced a 19.4% decline. Between 2017 and 2020, imports increased by 5.7%, with an annualized growth rate of 1.9%.

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

During 2017-2020, the United States (18.3% of import value), France (1.5%), and Spain (0.6%) formed the main cluster of markets for Central America's milk and cream imports in value terms, with a combined share of 20.4% of total flows.

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

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