Milk market in Panama

Earlier Report Observations

Panama's milk market volume reached a peak of 224.8 thousand tons in 2020. This increase was driven by domestic trade openings and government financial incentive programs that stimulated local production, even as imports from Costa Rica were suspended due to a trade conflict and the COVID-19 pandemic affected supply chains.

After 2020, the market entered a sustained contraction, falling to 191.1 thousand tons by 2023. The ongoing trade dispute with Costa Rica continued to restrict imports, while adverse climate phenomena such as El Niño and La Niña persistently hindered dairy farming, reducing domestic output. Consumer shifts toward plant-based milk substitutes and widespread misinformation about the benefits of natural milk further eroded consumption.

Government support measures, including the implementation of Resolution 018 in 2022 providing non-reimbursable funds per liter of milk sold, alongside investments like the US$7 million expansion of the Nevada processing plant in Chiriquí, aimed to stabilize the sector. However, these efforts could not offset the combined pressure from trade barriers, climatic challenges, and changing consumer preferences.

Production milk in Panama

In kind, 2017-2020, K t

Top producers of milk, 2017-2020

World map of production of milk, 2017-2020

Panama's milk production rebounded after a two-year decline. In 2019, production reached its lowest point at 188.8 K t, marking a 9.6% decrease. However, in 2020, production increased significantly to 213.8 K t, representing a 13.2% rise compared to the previous year.

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

In value, 2017-2020, M $ US

Panama's milk production value also recovered following a two-year decline. In 2019, the value hit its minimum at 364.6 M $ US, with a substantial 16.9% drop. The following year, in 2020, production value rose to 462.9 M $ US, showing a 26.9% increase from 2019. Over the 2017-2020 period, overall production value decreased by 5.6%, with a compound annual growth rate of 1.9%.

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

Exports milk from Panama

Exports in kind, t

Panama's milk export volumes showed considerable volatility during this period. The lowest volume was recorded in 2019 at 1 632 t, representing a 61.9% decline. In contrast, exports peaked in 2017, creating a 2.9-fold difference between the highest and lowest years. By 2020, export volume rebounded sharply to 3 142 t, marking a substantial 92.5% increase compared to 2019.

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

From 2017 to 2020, Panama's milk exports were concentrated in three main markets: Costa Rica, Venezuela, and Nicaragua. Together, these countries accounted for 79.9% of Panama's total milk exports by volume.

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

Panama's milk export values exhibited significant fluctuations. The lowest value occurred in 2019 at 3 152 K $ US, with a 64.9% decrease. Exports reached their peak in 2017, creating a 3.4-fold difference between the highest and lowest years. In 2020, export value recovered to 6 803 K $ US, representing a dramatic 115.8% increase compared to 2019.

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

Between 2017 and 2020, Costa Rica was the leading destination for Panama's milk exports by value, accounting for 46.2% of total exports. Venezuela followed with 27.2%, and Nicaragua with 7.2%. Together, these three markets represented 80.7% of Panama's total milk export value.

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 to Panama

Imports in kind, t

Panama's milk imports increased for the second consecutive year in 2020, reaching approximately 14 129 t, which represents a 1.3% rise from 2019. The lowest import volume was recorded in 2018 at 11 313 t, marking a 29.4% decrease. Imports then rebounded in 2019 with a 23.3% increase. Over the 2017-2020 period, overall imports decreased by 11.9%, with a compound annual growth rate of 4.1%.

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

From 2017 to 2020, Costa Rica was the primary source of Panama's milk imports by volume, accounting for 30.2% of total imports. The United States followed with 22.5%, and New Zealand with 15.4%. Together, these three countries supplied 68.2% of Panama's milk imports.

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

Panama's milk import value continued to grow for the second year in a row. In 2020, imports reached 37 250 K $ US, showing a 21.1% increase from the previous year. The lowest import value was recorded in 2018 at 26 360 K $ US, representing a 31.6% decrease. Over the 2017-2020 period, overall import value decreased by 3.3%, with a compound annual growth rate of 1.1%.

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

Between 2017 and 2020, the United States was the leading source of Panama's milk imports by value, accounting for 23.2% of total imports. New Zealand followed closely with 21.3%, and Costa Rica with 20.0%. Together, these three countries represented 64.5% of Panama's total milk import value.

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

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