Milk powder market in Central America

Earlier Report Observations

Between 2018 and 2023, the Central American milk powder market volume showed considerable volatility, rising from 495 thousand tons to a peak of 573 thousand tons in 2019 before falling and then surging again to 553 thousand tons in 2022. The sharp increase in 2022 was primarily driven by a temporary policy in Panama that eliminated import tariffs on whole milk powder until year-end or until 1,600 metric tons were imported, aimed at preventing local shortages. This measure facilitated additional regional trade flows, contributing to the year's market expansion.

Earlier in the period, regional trade was shaped by tariff structures such as Ecuador's specific duties on dairy products, including milk powder, which ranged from 20% to 54% and affected market access. Concurrently, the market saw product innovation with the introduction of lactose-free and iron-fortified milk powder varieties, catering to evolving nutritional preferences. Furthermore, the Costa Rican government's update of the MiMejorCompraCR platform enhanced price transparency for basic goods like milk powder, influencing consumer purchasing behavior.

Domestic production in the region grew steadily throughout the period, from 190 thousand tons in 2018 to 216 thousand tons in 2023, providing a stable base for the market despite import fluctuations.

Production milk powder in Central America

In kind, 2017-2020, K t

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Central America's milk powder production has grown for the third year in a row. In 2020, the region produced 206.0 thousand tons of milk powder, showing a modest year-over-year increase of 2.3%. From 2017 to 2020, production rose by 10.5%, with an average annual growth rate of 3.4%.

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

Exports milk powder from Central America

Exports in kind, K t

The market showed an unstable pattern during this period. Central America exported 26.7 thousand tons of milk powder in 2020, which was largely unchanged from the previous year. The minimum export volume was recorded in 2019 at 26.6 thousand tons, while the peak occurred in 2018 with 96.1 thousand tons, representing a 3.6-fold difference between these years. The largest decline was seen in 2019, dropping by 72.3%, while the biggest increase happened in 2018, rising by 41.8%.

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

From 2017 to 2020, the top buyers of milk powder from Central America were Venezuela, accounting for 52.1% of exports in kind, the United States with 10.8%, and Cuba at 4.5%. Together, these three countries made up 67.4% of total exports in kind.

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

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

Exports in value, M $ US

In 2020, milk powder exports from Central America reached 123.2 million US dollars, reflecting a slight increase of 1.4% compared to the previous year. The minimum value was recorded in 2019 at 121.4 million US dollars, while the maximum was in 2018 at 212.5 million US dollars. Between 2017 and 2020, exports decreased by 37.4%, equivalent to an annualized decline of 14.4%. The largest drop occurred in 2019, falling by 42.8%, while the biggest rise was in 2018, increasing by 8.0%.

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

Over the 2017–2020 period, the primary buyers of milk powder from Central America in value terms were Venezuela, with 36.0% of exports, the United States at 12.3%, and Cuba with 5.0%. These three countries jointly accounted for 53.3% of total export value.

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

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

Imports milk powder to Central America

Imports in kind, K t

Milk powder imports into Central America declined for the second consecutive year. In 2020, imports totaled 336.4 thousand tons, down 15.5% from 2019. The maximum import volume was recorded in 2018 at 401.2 thousand tons, with the largest increase that year at 29.3%. From 2017 to 2020, imports overall increased by 8.4%, with an average annual growth rate of 2.7%.

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

Between 2017 and 2020, the United States was the dominant supplier of milk powder to Central America, making up 89.0% of total imports in kind, while other countries accounted for the remainder.

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

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

Imports in value, M $ US

After two years of growth, milk powder imports into Central America declined. In 2020, imports were valued at 968.3 million US dollars, showing a slight decrease of 0.7% year-over-year. The maximum value was recorded in 2019 at 968.3 million US dollars, with the largest increase in 2018 at 13.7%. From 2017 to 2020, imports increased by 27.9%, with an average annual growth rate of 8.5%.

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

During 2017–2020, the import pattern in value terms was marked by the strong dominance of the United States, which held 83.7% of total flows, while other partners had relatively smaller shares.

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

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