For businessmen in the sector the decline in dairy sales to May this year is mostly because of the rise in tax obligations in the country, directly impacting on export competitiveness.
Data from the Center for Export Procedures (Cetrex), say that between January and May 2018, and the same period in 2019, foreign sales of dairy fell from $53 million to $45 million, equivalent to a fall of 16%.
Between 2017 and 2018, exports of milk and milk products fell 8%, and producers expect the downward trend to continue this year, because of the negative impact of the tax reform.
Figures from the Central Bank of Nicaragua show that between 2017 and 2018 exports of milk and milk products fell from $184 million to $167 million, and the volume traded fell from 85 million kilograms to 63 million kilograms.
Local producers in partnership with Nestlé are working on the installation of seven new grade C milk cooling centers, to be in the central provinces and Chiriqui.
The first of the centers, which plans to collect 2,500 liters of milk per day, was installed in El Cañafístulo, in Los Santos. It was also reported that in the coming weeks will begin operations another site in the same province, but this will be in Pedasi.
Dos Pinos and Distribuidora Corripio invested $30 million in the construction of a plant that has an area of 8,500 square meters and a packaging capacity of 250,000 liters per day.
The Costa Rican Cooperative of Milk Producers Dos Pinos and Distribuidora Corripio, founded the Caribbean Dairy Group, being their first joint investment the construction of the new industrial plant, which will produce 50 varieties of dairy products, juices, nectars and soft drinks of the Dos Pinos and La Granja brands.
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"]
The sustained rise in imports of dairy products, coupled with drought in different parts of the country, explains the reduction of more than 50% reported in milk production in the Dominican Republic.
Directors of the Dominican Association of Milk Producers (Aproleche), estimate that between 2012 and 2018, the purchase of liquid milk abroad went from 900 thousand liters to 40 million liters.
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.
Mexico's Lala invested $14 million in the purchase of high-tech machinery and the expansion of its dairy plant located in San Ramon, Alajuela province.
Managers of the Mexican company reported that the area of the facilities was expanded from 4,240 m2 to 24,250 m2, and with this expansion the company reaches a processing capacity in the country of 150 thousand liters of milk per day.
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"]
Arguing that in Guatemala, milk from other countries in the region is being traded at a lower price than that sold in the countries of origin, producers in the country announce that they will submit a complaint.
The Representatives of the Chamber of Milk Producers of Guatemala announced that the complaint they are preparing will be filed with the Ministry of Economy, through the Directorate of Foreign Trade Administration (DACE).
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%.
Panama's Ministry of Education tenders for the supply, transport and delivery of nutritionally improved cookies and fortified milk.
Purchase of the Government of Panama 2018-0-07-0-99-LV-034959:
"Supply, transportation, delivery and on-site delivery of fortified milk for the National Complementary School Feeding Program by 2019. Specifically, semi-skimmed and fortified milk is required; semi-skimmed, flavored and fortified milk with vitamins and minerals, and omega 3 DHA. Each 8-ounce (236-240ml) container must include fresh fluid milk type A or B.
It has been estimated that since the crisis began in Nicaragua, losses in trade between Nicaraguan and Salvadoran companies amount to $12 million.
The cheese and milk trade is the area that has been most affected by the socio-political crisis occurring in Nicaragua.According to representatives from the Ministry of Economy of El Salvador, losses in bilateral trade not only of cheese and milk, but also of other goods, amount to $12 million.
In the first quarter of the year, trade in milk and dairy products among Central American countries totaled $77 million, and 73% was purchased by companies in El Salvador and Guatemala.
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 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.