Costa Rica: Challenges for the Dairy Sector

There still remains tasks to be completed in the process of preparing to compete with milk and dairy products, which in 2025 will start to enter the country duty-free under the CAFTA.

Friday, April 7, 2017

In regards to how to prepare for the next market opening, José Antonio Madriz, President of the National Chamber of Milk Producers, told that there still remains work to be done, and that they "... have approached the Ministry of Agriculture and Livestock (MAG) several times, as lead agency, to establish joint plans between the private sector, government, universities and other research centers, but the result is insufficient."

See also: "Purchases and Sales of Dairy Products in Central America"

In the view of Leiner Vargas, an economist at the International Center for Economic Policy at the National University (CINPE-A), the time available has not been used in the best way. "...` The country was given the task of improving the herd, pasture, value - added chains, work on the processes of industrialization, labeling, food safety, animal and plant health, forming partnerships between producers in order to have higher production scales and venture into markets where there were openings, which means that the agenda of domestic production has not been strong enough'."

The reality is different for the big players like Grupo Lala or Dos Pinos. Both companies "... consider, separately, that the dairy sector in Costa Rica can compete against the opening. The Mexican company Lala estimated that the local market, because it has the highest consumption per person in Central America and one of the best on the continent, is very interesting, while the Costa Rican Dos Pinos highlighted the adjustments it is making and how to compete with other players, both in the local market and in Central America."

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