Milk powder market in El Salvador

Earlier Report Observations

The milk powder market in El Salvador expanded from 10.4 thousand tonnes in 2018 to 13.2 thousand tonnes in 2019, driven by a shortage of fresh milk in the local market. Many dairy farmers sold their properties, reducing the domestic milk supply and prompting the dairy industry to increase imports of milk powder to meet demand. Government price controls were implemented to prevent speculation.

In 2020, market volume stabilized at 12.8 thousand tonnes as the fresh milk shortage persisted. The following year, however, the market contracted sharply to 9.0 thousand tonnes. Milk collection fell by 18–25% compared to the previous year, reflecting deteriorated economic conditions in the dairy sector. Although the industry showed a preference for importing powder over sourcing locally, overall imports dropped significantly, contributing to the smaller market size. The market has long been shaped by duty‑free imports of dairy products since 2008 and by the dominance of three large companies that control about 75% of the national market.

From 2022 onward, the market recovered, reaching 13.0 thousand tonnes in 2023. Continued scarcity of fresh milk and the industry’s reliance on imported powder supported the rebound, with imports rising again to fill the supply gap.

Production milk powder in El Salvador

In kind, 2018-2021, t

Top producers of milk powder, 2018-2021

World map of production of milk powder, 2018-2021

Milk powder production in El Salvador has increased for the third consecutive year. In 2021, the country produced 1,260 tons of milk powder, marking a modest gain of 4.8% compared to the previous year. Between 2018 and 2021, production surged by 93%, which translates to an annualized growth rate of 24.5%.

Annual dynamics of production in El Salvador in kind, 2018-2021, t

Exports milk powder from El Salvador

Exports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Export volumes dropped to their lowest point in 2018 and then climbed to their maximum in 2020, representing a 329-fold shift. In 2021, El Salvador exported 76 tons of milk powder, equivalent to a decline of 28.2% from 2020. The peak volume was recorded in 2020 at 106 tons, while the largest increase occurred in 2019 with a growth of 15,295.4%.

Annual dynamics of product's exports from El Salvador in kind, 2018-2021, t

From 2018 to 2021, Guatemala was the primary destination for exports in kind, accounting for 80.6% of total flows. Other markets formed a long tail of smaller partners.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from El Salvador in kind, 2018-2021

Exports in value, K $ US

The market showed signs of volatility over the observed period. Export values fluctuated 527 times between the low of 2018 and the high of 2020. In 2021, El Salvador exported 268,000 US dollars worth of milk powder, indicating a sharp decrease of 44.0% versus the previous year. The maximum value was recorded in 2020 at 479,000 US dollars, and the largest increase occurred in 2019 with a growth of 18,180.2%.

Annual dynamics of product's exports from El Salvador in value, 2018-2021, K $ US

Throughout 2018 to 2021, the partner structure for exports in value terms was centered on Guatemala, whose share amounted to 79.6% of total flows. Other markets formed a less significant perimeter.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from El Salvador in value, 2018-2021

Imports milk powder to El Salvador

Imports in kind, t

Milk powder imports to El Salvador declined for the second consecutive year. In 2021, imports amounted to 7,816 tons, indicating a decrease of 33.2% year-over-year. Over the period from 2018 to 2021, imports decreased by 19.6%, with a compound annual growth rate of -7.0%. The maximum volume was recorded in 2019 at 12,320 tons, and the largest increase occurred in 2019 with a growth of 26.8%.

Annual dynamics of product's imports to El Salvador in kind, 2018-2021, t

From 2018 to 2021, New Zealand (49.8% of imports in kind), the United States (28.3% of imports in kind), and Costa Rica (10.4% of imports in kind) were the leading sources in the country structure of imports in kind. Together, they accounted for 88.4% of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to El Salvador in kind, 2018-2021

Imports in value, K $ US

After a two-year increase, milk powder deliveries to El Salvador declined. In 2021, El Salvador imported a total of 29,326,000 US dollars worth of milk powder, showing a steep decrease of 29.9% compared to 2020. Between 2018 and 2021, imports decreased by 8.1%, equating to an annualized rate of -2.8%. The maximum value was recorded in 2020 at 41,805,000 US dollars, and the largest increase occurred in 2019 with a growth of 26.1%.

Annual dynamics of product's imports to El Salvador in value, 2018-2021, K $ US

Throughout 2018 to 2021, New Zealand (49.4% of imports in value terms), the United States (20.7% of imports in value terms), and Costa Rica (18.4% of imports in value terms) formed the key group of partners for imports in value terms of milk powder to El Salvador. Jointly, they represented 88.5% of total flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to El Salvador in value, 2018-2021