Milk market in Central America

Earlier Report Observations

The Central American milk market expanded consistently from 2018 to 2023, with production rising from 16 890 thousand tonnes to 18 536 thousand tonnes and overall market volume growing from 17 190 thousand tonnes to 18 805 thousand tonnes.

The COVID-19 pandemic in 2020 prompted the implementation of biosecurity protocols across the region, which enabled dairy facilities to maintain operations and adapt supply chains. This, coupled with increased digitalization in distribution and sales during 2021, helped sustain production growth despite global disruptions.

By 2022, a rise in impact-oriented investment funds, particularly in Costa Rica, channeled capital into sustainable agri-food projects, supporting further capacity expansion in the dairy sector. Market volume continued to climb through 2023, reflecting the sector's resilience and ongoing development.

Production milk in Central America

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Central America's milk production has grown for the third year in a row. In 2020, the region produced 17,602 thousand tons of milk, marking a modest increase of 2.7% compared to 2019. Looking at the period from 2017 to 2020, production rose by 6.1%, which translates to 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

Following two years of growth, Central America's milk production value declined. In 2020, the output was valued at 31,938 million US dollars, showing a slight decrease of 0.9% from the previous year. Over the 2017-2020 period, production value increased by 11.3%, with a compound annual growth rate of 3.6%. The highest value was recorded in 2019 at 32,224 million US dollars, which also saw the largest annual increase of 7.2%.

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

Exports milk from Central America

Exports in kind, K t

In 2020, Central America exported 135.2 thousand tons of milk, up by 14.8% compared to 2019. However, over the 2017-2020 period, exports decreased by 21.9%, with a compound annual decline of 7.9%. The lowest export volume was in 2019 at 117.7 thousand tons, while the peak was in 2018 at 176.8 thousand tons. The most significant drop occurred in 2019, with a decline of 33.4%.

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

From 2017 to 2020, Venezuela, the United States, and the Dominican Republic were the key export partners for Central America's milk in volume terms. Venezuela accounted for 20.6% of exports, the United States for 13.3%, and the Dominican Republic for 8.9%. Together, these three countries represented 42.8% of total milk export flows from the region.

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, M $ US

In 2020, Central America's milk exports were valued at 245 million US dollars, increasing by 10.8% from the previous year. Over the 2017-2020 period, export value decreased by 18.1%, equivalent to an average annual decline of 6.5%. The lowest value was recorded in 2019 at 221 million US dollars, while the highest was in 2018 at 315 million US dollars. The largest annual decline occurred in 2019, with a drop of 29.6%.

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

Between 2017 and 2020, three main markets—Venezuela, the United States, and the Dominican Republic—collectively accounted for 46.2% of Central America's total milk 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 to Central America

Imports in kind, K t

After two years of growth, Central America's milk import volumes declined. In 2020, imports reached 442.7 thousand tons, down by 8.9% compared to 2019. Over the 2017-2020 period, imports increased by 13.6%, with an average annual growth rate of 4.3%. The highest import volume was in 2019 at 486.1 thousand tons, and the largest annual increase was in 2018 at 22.1%.

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

From 2017 to 2020, the United States was the dominant source for Central America's milk imports in volume terms, holding a 72.1% share of total flows. The remaining imports were spread across various other markets.

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, M $ US

Central America's milk import value has risen for the third consecutive year. In 2020, imports amounted to approximately 1,085 million US dollars, reflecting a slight increase of 1.3% year-over-year. Over the 2017-2020 period, import value grew by 24.9%, with an average annual rate of 7.7%.

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

During 2017-2020, the United States remained the primary source for milk imports to Central America in value terms, accounting for 76.0% of total imports. Other destinations played a much smaller role in the import structure.

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

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