Dairy in El Salvador: Sales in Red Numbers

Because of the crisis generated by the covid-19, businessmen in the country estimate that due to the closure of shops, they are unable to sell an average of 200,000 bottles of milk per day.

Tuesday, March 31, 2020

According to the Association of Milk Producers of El Salvador (Proleche), national consumption has fallen in the last two weeks, a decline that can be explained by the home quarantine that has been decreed.

See "Post-Quarantine Consumption Patterns"

Alfonso Escobar, President of Proleche, explained to Elmundo.sv that "... the sector has faced an accelerated increase in dairy imports from Nicaragua in recent years. This slowed down national consumption, but farmers remained positive because it could still be sold in pupusas shops, shops or local markets."

Now, with the closure of most businesses, sales of locally produced dairy products have reported considerable drops.

Escobar added that "... before the quarantine the milk bottle was bought at $0.40, now the value is around $0.25 and, in some cases, does not cover the production costs."

Covid-19: How do the prospects for the food industry in El Salvador change?

We prepared for our clients the report "Information System: Impact Analysis of Covid-19 on Business" that answers these and other questions in times of uncertainty.

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More on this topic

Dairy: Uncertainty Due to Border Restrictions

March 2020

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.

More Inspections of Imported Dairy Products Requested

February 2020

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.

Demand for Milk Increases in Costa Rica

October 2019

In Costa Rica, the cooperative Coopeleche increased by 25% the volume of raw material sold to the Mexican Lala, a rise that would be explained by the better positioning of the company in the local market.

In general, volumes produced have increased, since official figures detail that between 2017 and 2018, milk production in Costa Rica grew by 1.5%, going from 1.14 million to 1.16 million tons.

El Salvador and the Dairy Market

July 2018

Although exports of dairy products have grown in the last two years, producers say that local production and domestic consumption have stagnated.

The Central Reserve Bank recorded record figures in the export of dairy products during the past year, adding up to $30 million, and in the first five months of 2018 sales abroad already add up to $12 million.

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