Milk powder with fat content of ≤1.5% market in Central America

Earlier Report Observations

The market for milk powder with fat content ≤1.5% in Central America experienced notable volatility from 2018 to 2023, with volume reaching 373.8 thousand tons in 2019 before declining sharply to 200.3 thousand tons in 2021. The initial rise coincided with increased imports of fluid milk linked to tariff reductions under CAFTA, which altered dynamics across the dairy sector. Subsequent fluctuations occurred within a regional trade environment where tariff elimination in the Central American Common Market facilitated cross-border flows.

Market structure remained concentrated, with large firms accounting for about 58% of sales and stable participation from major players like Nestlé. Product diversification gained momentum, including the launch of flavored milk powder blends and items targeting infant nutrition, reflecting shifts in consumer preferences. By 2024, a growing emphasis on milk quality—particularly fat and protein content—pushed producers to optimize cattle management to capture price premiums.

Imports, a primary driver of market volume, varied widely, from 366.4 thousand tons in 2018 to 204.6 thousand tons in 2023, directly influencing overall availability. The regional trade framework, with zero tariffs within the Central American Common Market, continued to shape supply patterns, even as external agreements like CAFTA affected import competition for fluid milk and related products.

Production milk powder with fat content of ≤1.5% in Central America

In kind, 2017-2020, t

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

Central America's production of milk powder with a fat content of ≤1.5% has increased for the third consecutive year. In 2020, the region produced 12 240 tonnes, marking a 3.6% rise from 2019. Between 2017 and 2020, production grew by 11.4%, which translates to an annualized rate of 3.7%.

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

Exports milk powder with fat content of ≤1.5% from Central America

Exports in kind, K t

The market for milk powder with a fat content of ≤1.5% exports from Central America showed significant volatility during this period. Exports peaked in 2018 at 70.7 thousand tonnes, then fell sharply to a low of 1.1 thousand tonnes in 2020, representing a 63-fold variation. In 2020, exports declined by 13.3% year-over-year. The largest increase occurred in 2018, with a jump of 143.2%, while the largest decline was recorded in 2019 at 98.2%.

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

From 2017 to 2020, Central America's exports of milk powder with a fat content of ≤1.5% were heavily dependent on Venezuela, which accounted for 96.5% of total exports in volume.

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

The value of milk powder with a fat content of ≤1.5% exports from Central America followed an unstable trend over this timeframe. Exports reached a peak of 127.0 million US dollars in 2018, then dropped to a low of 3.2 million US dollars in 2019, a 40-fold change. In 2020, exports amounted to 3.5 million US dollars, up 9.3% from the previous year. The largest increase was in 2018 at 101.1%, while the largest decline occurred in 2019 at 97.5%.

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

During 2017–2020, Venezuela was the dominant market for Central America's milk powder with a fat content of ≤1.5% exports in value terms, representing 92.6% of total flows.

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 with fat content of ≤1.5% to Central America

Imports in kind, K t

Central America's imports of milk powder with a fat content of ≤1.5% declined for the second consecutive year. In 2020, imports totaled 302.2 thousand tonnes, down 16.8% from the previous year. Between 2017 and 2020, imports increased by 6.9%, equivalent to an annualized rate of 2.3%. The highest volume was recorded in 2018 at 366.4 thousand tonnes, with the largest increase that year at 29.6%.

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

From 2017 to 2020, the United States was nearly the exclusive supplier of milk powder with a fat content of ≤1.5% to Central America, holding a 97.3% share of total imports in volume.

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, Central America's import value for milk powder with a fat content of ≤1.5% declined. In 2020, imports reached 821.6 million US dollars, reflecting a slight decrease of 1.7% year-over-year. Between 2017 and 2020, imports rose by 28.8%, or an annualized rate of 8.8%. The peak value was in 2019 at 835.7 million US dollars, with the largest increase that year at 14.8%.

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

In 2017–2020, the country structure of imports in value terms was highly concentrated, with the United States accounting for 96.9% of total flows.

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

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