Milk market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2020, milk production in Latin America and the Caribbean grew from 84 thousand tons to 88 thousand tons, driven by technological innovation in the sector. This growth was constrained by declining efficiency and seasonal climatic conditions affecting pasture availability. The COVID-19 pandemic in 2020 introduced further disruptions to supply chains and demand, yet production continued to expand.

In the following years, production growth slowed, reaching 89.6 thousand tons in 2023. This occurred against a backdrop of rising production costs, leading some producers to exit, particularly in Brazil, and adverse climate events like La Niña. The market also faced competition from products incorrectly labeled as 'milk,' creating consumer confusion and affecting traditional demand.

In 2024, the Brazilian government launched a strategy to incentivize milk production and consumption among family farms, aiming to boost productivity and competitiveness. Concurrently, the expansion of distribution channels such as supermarkets and growing demand for functional dairy products supported the market, despite pressure from imports and plant-based alternatives.

Production milk in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in Latin America and the Caribbean has increased for the third consecutive year. In 2020, the region produced 88 040 K t of milk, marking a 3.1% year-over-year rise. From 2017 to 2020, production grew by 7%, which translates to an annualized growth rate of 2.3%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, B $ US

In 2020, the value of milk output in Latin America and the Caribbean reached 291.0 B $ US, showing a robust increase of 21.0% compared to the previous year. Over the period from 2017 to 2020, production value rose by 20.3%, with a compound annual growth rate (CAGR) of 6.4%. The lowest value was recorded in 2019 at 240.5 B $ US, which saw a decline of 2.9% that year.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, B $ US

Exports milk from Latin America and the Caribbean

Exports in kind, K t

Milk exports from Latin America and the Caribbean have declined for the second consecutive year. In 2020, exports amounted to 434.6 K t, reflecting a 2.0% decrease from the previous year. The highest export volume was in 2018 at 491.9 K t, which saw a 14.0% increase that year. In 2019, exports dropped by 9.8%, the largest decline during this period.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the country composition of milk exports in kind was dispersed. Algeria accounted for 19.5% of exports, the United States for 7.4%, and China for 2.7%, together making up just 29.7% of total flows. The remaining 70.3% was distributed among a wide range of other destinations.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

In 2020, milk exports from Latin America and the Caribbean were valued at 1 437 M $ US, up by 15.0% from the previous year. Over the period from 2017 to 2020, export value increased by 13.2%, with a CAGR of 4.2%. The lowest value was recorded in 2019 at 1 249 M $ US, which saw a decline of 13.8% that year. The highest value was in 2018 at 1 450 M $ US.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, milk exports in value terms from Latin America and the Caribbean were not heavily concentrated. Algeria represented 25.6% of exports, the United States 6.2%, and Russia 3.4%, together capturing only 35.2% of total flows.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports milk to Latin America and the Caribbean

Imports in kind, K t

Milk imports into Latin America and the Caribbean have increased for the third consecutive year. In 2020, the region imported 925.3 K t of milk, showing a modest advance of 2.2% compared to the previous year. Over the period from 2017 to 2020, imports grew by 6.5%, with a CAGR of 2.1%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the main sources for milk imports in kind were the United States, accounting for 42.1% of imports, New Zealand with 5.4%, and the Netherlands with 3.0%. Together, these three markets made up 50.5% of total import flows.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

In 2020, Latin America and the Caribbean imported milk worth 2 422 M $ US, representing an 11.8% gain from 2019. Over the period from 2017 to 2020, import value increased by 12.9%, with a CAGR of 4.1%. The largest decline was recorded in 2019, with a drop of 2.5%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, three principal markets—the United States, New Zealand, and the Netherlands—together accounted for 53.2% of total milk imports in value terms into Latin America and the Caribbean.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020