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)."

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