Dairy Products, Supply and Prices

Dairy producers in Nicaragua are facing a scenario of falling prices, a situation resulting from the oversupply of this type of food reported in the local market.

Tuesday, June 8, 2021

Executives of the National Livestock Commission of Nicaragua (Conagan) report that with the onset of winter, the country's trading partners are reducing dairy purchases to protect local production.

Businessmen of the sector assure that in this context of crisis they are facing, the price they are paid for dairy products has fallen up to 40%.

You may be interested in "Dairy: What Does the Consumer Think?"

Ronald Blandon, president of Conagan, told Laprensa.com.ni that a possible production stoppage "... 'it is part of the reactions of the producers, we know that they depend on the sale of milk and every Friday they receive their check, when the plants do not buy from the collection centers, it is normal that the cooperatives protest... it is an uncomfortable situation because there is no stability in prices and there are low tariffs and milk is still produced every day, it is normal that there are these reactions'."

Blandon added that "... the problem is one of markets, of all the milk production, 70% is exported and if they close the door where you export then you have an internal oversupply and when it happens, the price falls."

Research by CentralAmericaData shows that when analyzing Central American trade in milk and dairy products, Nicaragua is the main exporter, with El Salvador, Guatemala and Honduras as the main destination markets for production.

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More on this topic

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October 2020

In Nicaragua, from January to July of this year, exports of livestock products totaled $449 million, 16% more than reported for the same period in 2019, mainly due to increased sales of beef.

Figures from the Export Processing Center (Cetrex) indicate that between January and July 2019 and the same period this year, foreign sales of livestock products increased from $388 million to $449 million.

Dairy: Uncertainty Due to Border Restrictions

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After a quarantine was decreed in El Salvador because of the spread of covid-19, there is uncertainty among Nicaraguan producers because the borders may be closed for their products.

Since March 11, Salvadoran President Nayib Bukele has decreed a nationwide quarantine, arguing that there is a risk of spreading the coronavirus to neighboring countries, where there are already several confirmed cases.

Dairy: Bad Times in Nicaragua

April 2019

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.

Livestock: Bad Times in Nicaragua

March 2019

The barriers imposed by the Honduran and Panamanian markets, coupled with the negative effect of the recent tax reform, force Nicaraguan cattle ranchers to predict a bleak future.

Figures from the National Livestock Commission of Nicaragua (Conagan) specify that between 2017 and 2018 meat exports from Nicaragua fell by 7.9%, from $587 million to $541 million, and in the case of dairy, the fall was 8.4%, going down from $177 million to $162 million.

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