In Central America more than 6 million people search online and participate in conversations associated with dairy products, with ice cream, fudge and yogurt being some of the products with the greatest presence in consumer interactions.
An analysis of consumer interests and preferences in Central America, prepared by the Trade Intelligence Unit of CentralAmericaData, yields interesting results on people's preferences and tastes in food and other types of products or services.
In the last five years, liquid milk sales in Central America increased 16%, from $3,935 million in 2014 to about $4,566 million in 2019, growth that was boosted by the Costa Rican and Honduran markets.
Figures from the "Liquid Milk Market Snapshot" prepared by the Trade Intelligence Unit of CentralAmericaData, detail that in the last five years the volume consumed at regional level of liquid milk registered an increase, since between 2014 and 2019 it is estimated that demand in Central America rose from 3,907 to 4,202 million liters.
Arguing that quality and health standards are not being met, Salvadoran farmers are asking for greater controls on milk products entering from Nicaragua and Honduras.
CentralAmericaData reports that from January to September 2019 El Salvador was the main buyer of milk and dairy products from the other Central American countries, importing $106 million, of which $78 million was bought from Nicaragua, $14 million from Costa Rica and another $13 million from Honduras.
The Ministry of Economy found that Costa Rican Dos Pinos had dumped, but ruled out sanctions, arguing that no damage was caused to sales or local production.
The investigation process was carried out by the Ministry of Economy of El Salvador, derived from the complaint filed in 2017 by the Salvadoran Cooperativa Ganadera de Sonsonate, de RL de CV against the Costa Rican Cooperativa de Productores de Leche Dos Pinos and the local distributor Comersal.
Between January and September of last year, trade in milk and dairy products between the countries of the region totaled $240 million, and more than 75% was bought by companies in El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.
According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million.
In the first half of the year, trade in milk and dairy products between Central American countries totaled $151 million, and more than 40% was bought by companies in El Salvador.
Figures from the information system on the Milk and Dairy Market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
The regional guild of the sector reported that the volume of milk produced by the countries of the region increased from 3.5 to 3.7 million metric tons between 2015 and 2016.
According to figures from the Central American guilds, the increase in global production registered in 2016, when the most updated statistics exist as a region, is explained by increases reported in all countries, mainly from Costa Rica with 18%, followed by El Salvador with 14%, Guatemala with 13%, Panama with 6%, and Honduras with 4%.
The production plant that Grupo Lala is building in Escuintla, Guatemala, will be ready to start operating in September.
The milk production that will be shipped from the plant in Palin, Escuintla, will go to the southern market of Mexico, Honduras and El Salvador, according to representatives of the company of Mexican origin.
In 2017, trade in milk and dairy products among countries in the region amounted to $306 million, 2% more than what was sold in 2016, and the highest value in the last six years.
Figures from the Information System on the Milk and Milk Products Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
The Salvadoran government has stated that there are no instructions to establish import tariffs on Salvadoran products in any Honduran government institution.
From a statement issued by the Ministry of Economy of El Salvador:
April 6, 2018.The Ministry of Economy, in light of news circulating in various media outlets that the Honduran government will take reciprocal measures against Salvadoran dairy products, wishes to make public knowledge that:
Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.
Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of themore restrictive import controls.
In El Salvador, the Ministry of Economy has started an investigation into alleged dumping practices, after Cooperativa Ganadera de Sonsonate filed a complaint against the Costa Rican company Dos Pinos.
The Ministry of Economy ordered an investigation into alleged anti-competitive practices in the dairy products market, specifically related to sales of fluid milk, in the period between July 1, 2016 and June 30, 2017.
The producers' association estimates that annual milk production will close at above 900 million liters, which represents an increase of 4%.
Climatic factors such as a less extensive drought and an increase in rains explain, in the view of producers, the increase of around 25 million liters which is expected to be seen in production figures at the close of 2017.
The Salvadoran government has decided to postpone until November 1 the entry into force of new requirements for importers of dairy products.
After meeting with the heath authorities in Nicaragua, which is where most of El Salvador's imports come from, the Ministry of Agriculture and Livestock (MAG) decided to grant importing companies more time to get up to date with the new health requirements in the new regulations.See "El Salvador Tightens Controls on Dairy Imports"