Milk and cream market in Nicaragua

Earlier Report Observations

The market volume for not concentrated, not sweetened milk and cream in Nicaragua expanded from 1 318 thousand tons in 2018 to 1 456 thousand tons in 2022, before contracting to 1 390 thousand tons in 2023. The initial growth through 2020 occurred without major reported sector-specific drivers. From 2021, the Nicaraguan Chamber of the Dairy Sector (CANISLAC) promoted industrialisation and access to specialised machinery at low cost, while a reduction in seasonal overproduction ('golpe de leche') helped stabilise supply. That same year, authorities set deadlines for labelling and packaging of reconstituted dairy and substitute products to avoid consumer confusion, responding to rising consumption of milk analogues.

In 2022, the market nearly stabilised as tighter phytosanitary controls for exports and dry-season milk shortages constrained further expansion. The following year, drought and El Niño weather patterns, combined with high input costs and legal uncertainty, led to a drop in dairy farming output, reducing the overall market size. Concurrently, new EU regulations on deforestation-free and carbon-neutral imports affected dairy export prospects. By 2024, early-year production was reported up 6.2%, aided by government actions to promote good livestock practices, alternative feeding, and value addition, along with tariff-free import rules for milk powder tied to domestic purchase commitments.

Production milk and cream in Nicaragua

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

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

Nicaragua's milk and cream production has increased for the third consecutive year. In 2020, the country produced 1,419 thousand tons of milk and cream, representing a 6.2% increase compared to the previous year. Over the period from 2017 to 2020, production grew by 14.3%, with an average annual growth rate of 4.5%.

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

In value, 2017-2020, M $ US

Nicaragua's milk and cream production has increased for the second consecutive year. In 2020, the output was valued at 892.4 million US dollars, showing a 1.0% rise from the previous year. The lowest value was recorded in 2018 at 840.4 million US dollars. The largest decline occurred in 2018 with a 5.3% drop, while the largest increase was in 2019 with a 5.1% gain.

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

Exports milk and cream from Nicaragua

Exports in kind, t

Nicaragua's milk and cream exports have declined for the third consecutive year. In 2020, the country exported 5,989 tons of milk and cream, marking a 5.2% decrease from the year before. From 2017 to 2020, exports fell by 78%, with an average annual decline of 39.7%.

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

Between 2017 and 2020, the main markets for Nicaragua's milk and cream exports in volume terms were Venezuela (35.2% of exports), Guatemala (28.5% of exports), and Costa Rica (25.2% of exports). Together, these three countries accounted for 88.9% of total export flows.

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

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

Exports in value, K $ US

Milk and cream exports in Nicaragua have declined for the third consecutive year. In 2020, exports amounted to 3,766 thousand US dollars, reflecting a 9.8% decrease compared to the prior year. Between 2017 and 2020, exports dropped by 80.7%, equating to an average annual decline of 42.2%.

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

Throughout 2017 to 2020, the core markets for Nicaragua's milk and cream exports in value terms were Venezuela (37.9% of exports), Guatemala (28.1% of exports), and Costa Rica (22.8% of exports). Collectively, these three countries represented 88.9% of total export flows.

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

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

Imports milk and cream to Nicaragua

Imports in kind, t

Nicaragua imported 3,579 tons of milk and cream in 2020, reflecting a substantial 11.9% increase compared to 2019. Over the period from 2017 to 2020, imports grew by 22.4%, with an average annual growth rate of 7.0%. The largest decline was recorded in 2019 with a 4.4% drop, while the largest increase occurred in 2018 with a 14.5% rise.

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

From 2017 to 2020, Costa Rica accounted for almost all of Nicaragua's milk and cream imports in volume terms, with a share of 100.0% of total flows.

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

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

Imports in value, K $ US

In 2020, foreign milk and cream supplies to Nicaragua totaled 2,910 thousand US dollars, marking a 15.2% increase from the previous year. Over the period from 2017 to 2020, imports rose by 15.7%, with an average annual growth rate of 5.0%. The largest decline was recorded in 2019 with a 5.4% drop.

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

Between 2017 and 2020, virtually all of Nicaragua's milk and cream imports in value terms were associated with Costa Rica, whose share reached 99.9% of total flows.

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

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