Milk and cream market in Panama

Earlier Report Observations

Between 2018 and 2020, the market volume for milk and cream in Panama first contracted from 316 thousand tons to 277 thousand tons, driven by a decline in domestic milk production. The market rebounded to 314 thousand tons in 2020 as dairy farms adopted new technologies and enhanced sanitary standards, which helped offset pandemic-related disruptions.

After a drop to 289 thousand tons in 2021, the market saw a modest recovery to 295 thousand tons in 2022. In 2023, market volume fell again to 287 thousand tons, primarily due to a 6.1% decrease in milk intake by processors and rising production costs, especially for animal feed.

In 2024, Panama applied a special agricultural safeguard on imported fluid milk from the United States to protect local producers. Concurrently, Productos Nevada, a subsidiary of Cooperativa Dos Pinos, invested $7 million in a new processing plant in Chiriquí. Despite a national campaign to promote domestic dairy consumption, sales and household demand continued to weaken amid higher prices and reduced purchasing power.

Production milk and cream in Panama

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 Panama increased after two years of decline. In 2020, production reached 309.3 K t, marking a 14.1% year-over-year gain. Over the 2017-2020 period, production decreased by 2.6%, with a compound annual growth rate of 0.9%. The lowest production level was recorded in 2019 at 271.2 K t, which also saw the largest decline of 13.1%.

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

Exports milk and cream from Panama

Exports in kind, t

The market showed significant volatility during these years. From 2018 to 2019, exports fluctuated dramatically, with a 3.5-fold difference between the peak and trough. In 2020, Panama exported 166 t of milk and cream, representing a substantial 45.1% increase compared to the previous year. The lowest export volume was 114 t in 2019, while the highest was 395 t in 2018. The largest decline occurred in 2019 at 71.1%, and the largest increase was in 2018 at 53.5%.

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

From 2017 to 2020, Costa Rica was the primary destination for Panama's milk and cream exports, accounting for 46.1% of the total. El Salvador followed with 3.7%, and Venezuela with 1.0%. Together, these three countries represented 50.8% of Panama's export flows.

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

The market displayed an unstable trend throughout this period. Between 2018 and 2019, export values varied widely, with a 4.7-fold difference from peak to trough. In 2020, Panama exported milk and cream worth 369 K $ US, up 70.0% from 2019. The lowest value was 217 K $ US in 2019, while the highest was 1 027 K $ US in 2018. The largest decline was 78.9% in 2019, and the largest increase was 189.3% in 2018.

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

From 2017 to 2020, Costa Rica remained the dominant destination for Panama's milk and cream exports in value terms, holding a 75.1% share of total flows. The remaining exports were fragmented across other markets.

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

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

Imports milk and cream to Panama

Imports in kind, t

After two years of growth, Panama's milk and cream imports declined. In 2020, imports totaled 6 072 t, a decrease of 29.4% compared to 2019. The highest import volume was recorded in 2019 at 6 072 t, which also saw the largest increase of 44.1%.

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

From 2017 to 2020, Costa Rica was the principal source of milk and cream imports to Panama, accounting for 76.6% of total imports in kind. Other countries contributed smaller shares.

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

In 2020, Panama's cross-border shipments of milk and cream totaled 5 223 K $ US, a 26.8% decrease from the prior year. Over the 2017-2020 period, imports increased by 7.1%, equivalent to an annualized rate of 2.3%. The lowest value was 4 666 K $ US in 2018, and the highest was 7 139 K $ US in 2019. The largest increase occurred in 2019 at 53.0%.

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

From 2017 to 2020, Costa Rica continued to be the main source for milk and cream imports to Panama in value terms, capturing 79.7% of total imports. The remainder was distributed among other countries.

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

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