Milk powder market in Caribbean

Earlier Report Observations

The milk powder market in the Caribbean declined from 111 thousand tonnes in 2018 to 66 thousand tonnes in 2023. Domestic production also fell over this period, coinciding with the implementation of stricter quality and safety standards for infant milk powder production, including factory inspection plans and adherence to Codex Alimentarius guidelines.

A sharp market contraction of 26% occurred in 2023, primarily due to geopolitical tensions that disrupted trade flows and a significant reduction in demand from China, a major global importer. Furthermore, the progressive enforcement of European regulations for infant formula, mandating specific DHA content from 2020 onward, altered product formulation requirements and likely affected import dynamics.

By 2024, import volumes remained subdued, reflecting ongoing supply chain challenges and low global prices for skimmed milk powder, which provided little incentive for market expansion.

Production milk powder in Caribbean

In kind, 2017-2020, t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Milk powder production in the Caribbean has declined for the third year in a row. In 2020, the region produced 4 565 tonnes of milk powder, marking a significant 10.7% drop compared to 2019. Over the period from 2017 to 2020, production fell by 30.6%, with an average annual decline of 11.5%.

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

Exports milk powder from Caribbean

Exports in kind, K t

Market performance showed noticeable fluctuations during this period. Exports reached their lowest point in 2020 and peaked in 2019, with a 5.1-fold difference between these years. In 2020, the Caribbean exported 0.2 thousand tonnes of milk powder, indicating an 80.3% decline compared to 2019. The highest export volume was recorded in 2019 at 1.1 thousand tonnes, which represented a 357.1% increase from the previous year.

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

From 2017 to 2020, milk powder from the Caribbean was supplied to numerous markets. Even the largest destinations—Venezuela, Ireland, and the United States—together accounted for only 43.4% of total exports in volume terms.

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

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

Exports in value, M $ US

The market displayed an unstable trend throughout the timeframe. Import levels varied 9.2 times between the low in 2020 and the high in 2017. In 2020, milk powder deliveries from the Caribbean amounted to 0.7 million US dollars, down by 89.0% compared to 2019. The largest increase occurred in 2019, with a rise of 180.7%.

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

The partner structure of exports in value terms from 2017 to 2020 was fragmented. Venezuela (32.1% of exports in value), the United States (6.8%), and Ireland (3.3%) together accounted for only 42.2% of total flows, with no single country holding a dominant share.

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

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

Imports milk powder to Caribbean

Imports in kind, K t

Cross-border shipments of milk powder to the Caribbean declined for the second consecutive year. In 2020, the Caribbean imported 104.6 thousand tonnes of milk powder, showing a slight decline of 2.3% year-over-year. Between 2017 and 2020, imports decreased by 2.5%, equating to an average annual decline of 0.8%. The highest import volume was recorded in 2018 at 104.6 thousand tonnes, which represented a 1.2% increase from the previous year.

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

From 2017 to 2020, the country structure of imports in volume terms was highly diversified. New Zealand (16.6% of imports in volume), the Netherlands (13.5%), and Germany (11.0%) together accounted for only 41.0% of total flows, while a long tail of smaller markets made up the remaining 59.0%.

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

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

Imports in value, M $ US

After a two-year drop, milk powder shipments to the Caribbean from abroad increased. In 2020, imports reached 350.1 million US dollars, representing a gradual gain of 9.2% compared to the previous year. Over the period from 2017 to 2020, imports rose by 6.2%, with an average annual growth rate of 2.0%. The lowest value was recorded in 2019 at 320.6 million US dollars, and the largest decline occurred in 2018, with a drop of 2.7%.

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

From 2017 to 2020, milk powder was traded with many countries in the Caribbean. Even the largest sources—New Zealand, the Netherlands, and Uruguay—together represented only 40.4% of total imports in value terms.

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

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