Milk powder with fat content of ≤1.5% market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2021, the market volume for milk powder with ≤1.5% fat in Latin America and the Caribbean contracted from 554 thousand tons to 397 thousand tons. This decline was driven by reduced national milk output due to pasture shortages, which constrained raw material availability for powder production. The COVID-19 pandemic in 2020 further suppressed consumption as household purchasing power fell and foodservice demand plummeted. Simultaneously, a 17% surge in international dairy prices, fueled by strong Asian demand for skimmed milk powder, made imports more costly and dampened domestic consumption.

Market volume rebounded to 495 thousand tons in 2022, a 25% increase from the previous year. This recovery aligned with the acquisition of Fonterra's Chilean assets by Gloria Foods, which reshaped the major importer landscape and facilitated higher import flows. Despite elevated global prices, import volumes rose significantly. However, the market contracted again to 378 thousand tons in 2023 as internal demand weakened and national powder production fell by 15%, with manufacturers reorienting output toward fluid milk and cheese.

Entering 2024, regulatory changes including adjustments to Resolution 017 on raw milk pricing and stricter labeling rules for added sweeteners introduced new cost and compliance factors for producers. These developments follow a period where supply chain disruptions, shifts in major market players, and volatile international prices consistently influenced market dynamics.

Production milk powder with fat content of ≤1.5% in Latin America and the Caribbean

In kind, 2017-2020, K 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

Latin America and the Caribbean saw milk powder production with a fat content of ≤1.5% rise for the second year in a row. In 2020, the region produced 101.0 K t, marking a moderate 6.0% increase from 2019. Over the 2017-2020 period, production fell by 4.1%, with a compound annual growth rate of 1.4%. The lowest output was in 2018 at 88.9 K t, which also saw the largest decline of 15.6%. In contrast, 2019 recorded the biggest increase at 7.3%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

Exports milk powder with fat content of ≤1.5% from Latin America and the Caribbean

Exports in kind, K t

In 2020, Latin America and the Caribbean's exports of milk powder with a fat content of ≤1.5% stood at 33.4 K t, showing a sharp 27.6% drop from the previous year. From 2017 to 2020, exports decreased by 22.4%, with a compound annual growth rate of 8.1%. The peak was in 2019 at 46.1 K t, which also saw the largest increase of 9.1%.

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

From 2017 to 2020, the top destinations for Latin America and the Caribbean's milk powder exports with a fat content of ≤1.5% were Algeria, Russia, and China, accounting for 8.0%, 4.2%, and 3.8% of total exports, respectively. Together, these three markets made up 16.0% of all export flows.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

In 2020, the export value of milk powder with a fat content of ≤1.5% from Latin America and the Caribbean reached 116 M $ US, up 3.1% from 2019. Over the 2017-2020 period, exports fell by 28.3%, with a compound annual growth rate of 10.5%. The lowest value was in 2019 at 112 M $ US, which saw the largest decline of 47.3%. The highest was in 2018 at 213 M $ US, recording the biggest increase of 31.8%.

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

Between 2017 and 2020, Algeria, Russia, and China were the leading markets for Latin America and the Caribbean's milk powder exports in value terms, collectively representing 16.4% of total flows.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports milk powder with fat content of ≤1.5% to Latin America and the Caribbean

Imports in kind, K t

Latin America and the Caribbean's imports of milk powder with a fat content of ≤1.5% declined for the second consecutive year. In 2020, the region imported 440.4 K t, a substantial 10.6% decrease from 2019. The highest import volume was in 2018 at 507.5 K t, which also saw the largest increase of 17.0%.

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

From 2017 to 2020, the United States was the primary supplier of milk powder with a fat content of ≤1.5% to Latin America and the Caribbean, holding 76.9% of total imports in kind, while a diverse group of other countries accounted for the rest.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

In 2020, Latin America and the Caribbean's import value for milk powder with a fat content of ≤1.5% was 1 207 M $ US, showing a modest 5.1% rise from 2019. Over the 2017-2020 period, imports grew by 19.4%, with a compound annual growth rate of 6.1%. The largest decline occurred in 2019 at 0.7%, while the biggest increase was in 2018 at 14.4%.

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

Between 2017 and 2020, the United States dominated Latin America and the Caribbean's imports in value terms, with a 75.7% share of total flows, while the remainder was spread across various other markets.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020