El Salvador: Dairy Sector Loses Competitiveness

The entry of milk from Nicaragua and Honduras has complicated the situation for Salvadoran producers, who are claiming that they are losing 40% of their daily production due to the presence of the imported product.

Tuesday, July 11, 2017

The Livestock Association of El Salvador (AGES) is complaining that an increase in the presence of imported milk from neighboring countries has depressed prices, making it difficult for them to sell their product.
See: "Central American Trade in Milk and Dairy Up 4%"
The president of AGES, Mario Espinal, explained to Elmundo.sv that "... during the months of April, May and June there was a monthly loss of $6 million, about $200,000 per day. 'We have the milk and we can not sell it.  Industrial processing plants leave us with the milk some times. The milk goes off and we have to throw it away," said Espinal.
See also: "The Central American market for dairy products"
"... The particular case of Nicaraguan imports presents a challenge for the local dairy sector.  The price of milk fell to $0.17 per liter in that country, said Wilmer Fernandez, president of the Nicaraguan Dairy Chamber (Canislac), who was recently in San Salvador for a meeting of the Central American Dairy Federation (Fecalac). This gives it a competitive advantage over Salvadoran milk, which is around $0.40, according to the Salvadoran Association of Livestock and Dairy Industry (Asileche)."

Do you need more information about your business sector?

Request more information:

this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

More on this topic

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.

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.

More Dairy Products from Nicaragua in El Salvador

January 2018

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 the more restrictive import controls.

Nicaragua: Lack of Milk Powder Processors

September 2013

The only milk powder plant does not have a lot of processing power, and can not handle all of the supply during peak milk production.

"We believe it is important to try to establish a second processing plant for milk drying in potential areas, in order to process the country's surpluses especially in peak milk production moments," said Willmer Fernandez, president of the Central American Federation of the Dairy Sector (FECALAC).