Milk powder market in Bolivia

Earlier Report Observations

At the start of the period, Bolivia's milk powder market volume stood at over 15 000 t, initially supported by steady demand from middle- and high-income consumers in major cities like Santa Cruz, Cochabamba, and La Paz, who sought specialized health-oriented products. The market volume then entered a phase of gradual contraction, falling to around 14 000 t by 2020, as rising export shipments began to redirect supply away from the domestic market.

A sharp drop in domestic market volume to approximately 10 000 t in 2021 was driven primarily by a surge in exports, which exceeded 9 000 t that year. This export focus was facilitated by the concentrated structure of the dairy sector, dominated by the state-owned company PIL Andina, which accounted for about 77% of industrial milk procurement. While exports remained high through 2022, keeping domestic volume low, the sector showed value recovery with sales reaching $41 million, supported by quality investments in regions like Cochabamba.

Market volume rebounded to 11 364 t in 2023, aided by a slight decrease in exports and an increase in national milk production, which surpassed 557 million liters. During this period, the government and producers ratified mandatory price bands for raw milk by dairy zone to stabilize the market, while economic pressures, including a dollar shortage, contributed to rising retail prices for milk powder. Industry expectations centered on expanding export opportunities to new markets such as Mexico and Chile.

Production milk powder in Bolivia

In kind, 2017-2020, t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

In 2019, Bolivia's milk powder production reached its lowest point at 17 217 tons, declining by 1.4% from the previous year. However, production rebounded in 2020, reaching 17 904 tons—a 4.0% increase year-over-year. Over the period from 2017 to 2020, production grew by 2.8%, which translates to an average annual growth rate of 0.9%.

Annual dynamics of production in Bolivia in kind, 2017-2020, t

In value, 2017-2020, K $ US

Bolivia's milk powder production has increased for the third consecutive year. In 2020, the output was valued at 59 077 thousand US dollars, marking a 2.6% rise compared to the previous year. From 2017 to 2020, production grew by 14.5%, with an average annual growth rate of 4.6%.

Annual dynamics of production in Bolivia in value, 2017-2020, K $ US

Exports milk powder from Bolivia

Exports in kind, t

Bolivia's milk powder exports have grown for the second year in a row. In 2018, exports hit their lowest volume at 4 218 tons, dropping by 31.7% from the prior year. By 2020, exports had recovered to 6 236 tons, showing a strong 28.2% increase compared to 2019.

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

From 2017 to 2020, Colombia and Peru dominated Bolivia's milk powder exports in volume, together accounting for 99.9% of the total flows.

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

World map of product's exports from Bolivia in kind, 2017-2020

Exports in value, K $ US

Bolivia's milk powder exports have risen for the second consecutive year. In 2018, export value was at its minimum of 13 390 thousand US dollars, declining by 26.8% from the previous year. By 2020, exports had surged to 20 578 thousand US dollars, a sharp 26.4% improvement over 2019. Over the 2017-2020 period, exports increased by 12.5%, with a compound annual growth rate of 4.0%.

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

Between 2017 and 2020, Colombia and Peru were the main destinations for Bolivia's milk powder exports in value terms, jointly making up 99.9% of the total flows.

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

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

Imports milk powder to Bolivia

Imports in kind, t

Bolivia's milk powder imports have increased for the third year in a row. In 2020, imports amounted to 2 463 tons, reflecting a 13.8% improvement from the previous year. From 2017 to 2020, imports grew by 35.9%, with a compound annual growth rate of 10.8%.

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

Throughout 2017 to 2020, Uruguay, Chile, and Paraguay were the leading sources of milk powder imports to Bolivia in volume. Uruguay accounted for 49.3% of imports, Chile for 14.0%, and Paraguay for 9.6%, together representing 72.9% of total flows.

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

World map of product's imports to Bolivia in kind, 2017-2020

Imports in value, K $ US

Bolivia's milk powder imports have grown for the third consecutive year. In 2020, imports reached 8 184 thousand US dollars, a significant 37.1% increase compared to 2019. Between 2017 and 2020, imports rose by 69.9%, equating to an average annual growth rate of 19.3%.

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

From 2017 to 2020, Uruguay, New Zealand, and Paraguay were the primary suppliers of milk powder to Bolivia in value terms. Uruguay contributed 51.8% of imports, New Zealand 12.3%, and Paraguay 10.0%, jointly accounting for 74.1% of total imports.

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

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