Milk market in Nicaragua

Earlier Report Observations

The milk market in Nicaragua expanded from 1.3 million metric tons in 2018 to over 1.4 million metric tons by 2022, driven by investments in processing capacity and supportive policies. In 2018, the Masiguito cooperative invested $450,000 to double its cheese processing capacity for export, increasing demand for raw milk. The same year, the Fiscal Equity Law No. 453 was enacted to adjust the national tax regime, reduce anti-export biases, and facilitate investments in the agricultural sector. These measures were followed by the National Beef and Milk Production Plan 2020-2021, which promoted better livestock practices and herd management, leading to improved yields.

Market growth slowed from 2021 onward as production costs surged due to tax reforms and higher energy and fuel prices, raising milk collection costs by 40%. Despite strengthened on-farm production and over 99,000 active farms, the volume increase was minimal in 2022. In 2023, the market contracted to 1.37 million metric tons as milk exports grew by 6.2% in volume, diverting supply abroad. That year, Grupo LALA entered the Nicaraguan market with locally produced products, increasing competition and consumer options. However, rising costs and export orientation reduced domestic availability, leading to the observed decline.

Production milk in Nicaragua

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Milk production in Nicaragua has increased for the third consecutive year. In 2020, the country produced 1 400 K t of milk, marking a 6.2% rise compared to 2019. Over the period from 2017 to 2020, production grew by 13.8%, with a compound annual growth rate of 4.4%.

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

Exports milk from Nicaragua

Exports in kind, t

Cross-border shipments of milk from Nicaragua have declined for the third consecutive year. In 2020, exports totaled 15 303 t, representing a 2.6% decrease compared to 2019. From 2017 to 2020, exports fell by 57.8%, with a compound annual growth rate of -25.0%.

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

From 2017 to 2020, Guatemala (38.5% of exports in kind), El Salvador (20.2% of exports in kind), and Venezuela (19.9% of exports in kind) remained the top buyers of milk from Nicaragua, collectively accounting for 78.6% of total exports in kind.

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

After a two-year decline, milk exports from Nicaragua increased in 2020. Exports reached 39 221 K $ US, showing little change compared to 2019. Over the period from 2017 to 2020, exports decreased by 27.6%, with a compound annual growth rate of -10.2%. The lowest value was recorded in 2019 at 39 077 K $ US, while the largest decline occurred in 2018 at 23.7%.

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

Throughout 2017 to 2020, Guatemala (51.0% of exports in value terms), El Salvador (23.6% of exports in value terms), and Honduras (10.7% of exports in value terms) remained the key export partners in value terms, together making up 85.3% of total 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 to Nicaragua

Imports in kind, t

In 2020, milk shipments to Nicaragua from abroad totaled 6 877 t, showing minimal change compared to the previous year. Between 2017 and 2020, imports increased by 7.5%, equating to an annualized rate of 2.4%. The highest value was recorded in 2018 at 8 038 t, with the largest decline in 2019 at 14.7% and the largest increase in 2018 at 25.6%.

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

Over the period from 2017 to 2020, Costa Rica (61.4% of imports in kind), the United States (15.8% of imports in kind), and New Zealand (9.9% of imports in kind) contributed the most to imports in kind, jointly accounting for 87.1% 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

Milk shipments to Nicaragua from abroad declined for the second consecutive year. In 2020, Nicaragua imported milk worth 39 221 K $ US, corresponding to a decrease of 9.7% compared to the previous year. Between 2017 and 2020, imports fell by 17%, equating to an annualized rate of -6.0%. The highest value was recorded in 2018 at 18 960 K $ US, with the largest decline in 2019 at 19.9% and the largest increase in 2018 at 14.7%.

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

From 2017 to 2020, Costa Rica (50.2% of imports in value terms), New Zealand (22.6% of imports in value terms), and the United States (16.5% of imports in value terms) continued to be the main suppliers of milk to Nicaragua, jointly forming 89.3% of total imports in value terms.

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

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