Milk: Dumping Practices Confirmed in El Salvador

The Ministry of Economy found that Costa Rican Dos Pinos had dumped, but ruled out sanctions, arguing that no damage was caused to sales or local production.

Friday, July 12, 2019

The investigation process was carried out by the Ministry of Economy of El Salvador, derived from the complaint filed in 2017 by the Salvadoran Cooperativa Ganadera de Sonsonate, de RL de CV against the Costa Rican Cooperativa de Productores de Leche Dos Pinos and the local distributor Comersal.

This case included the investigation of the commercialization of milk from the Ultra High Temperature (UAT) process in long-lasting containers of the brands Dos Pinos, Coronado and Pinito.

After hearing the final resolution, the Salvadoran ranchers were dissatisfied, as they asked for the imposition of a tariff or entry tax of 50% on the products involved, arguing that damage had been caused as a result of the unfair practice denounced.

You may be interested in "Dairy: Regional Market up to September 2018

Lucrecia Brenes, a lawyer and economist specializing in international trade, who advised the Sonsonate Cooperative, explained to Nacion.com that "... it is almost a certainty to take the case to the courts, where El Salvador has a fairly new law for administrative contentious processes and the court is not saturated with complaints, as is the case in Costa Rica. Therefore, she explained, a process there would be faster than on Tico soil. This possibility is still being studied by dairy farmers in El Salvador."

On the other hand, Francisco Arias, manager of Corporate Relations and Livestock of Dos Pinos, said that "... There is a calculation of a margin of dumping by the MINEC (Ministry of Economy of El Salvador), which has set aside costs associated with marketing and not take comparable data, as established by applicable law, technically is not correct and so we argued in the process. However, this is not decisive, because the conclusion remains that there was no unfair practice."

According to reports from CentralAmericaData, in the first nine months of 2018 El Salvador was the main buyer of milk and dairy products from other Central American countries, importing $97 million, of which $72 million was bought from Nicaragua, $12 million from Costa Rica and another $11 million from Honduras.

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More on this topic

Dumping Claims in Dairy Market

December 2017

In El Salvador, the Ministry of Economy has started an investigation into alleged dumping practices, after Cooperativa Ganadera de Sonsonate filed a complaint against the Costa Rican company Dos Pinos.

The Ministry of Economy ordered an investigation into alleged anti-competitive practices in the dairy products market, specifically related to sales of fluid milk, in the period between July 1, 2016 and June 30, 2017.

Dairy in Panama: Industry Drives Livestock Productivity

November 2013

Farmers expect the arrival of Dos Pinos to bring benefits and be an option for improving local production.

According to Fredy Ramirez, manager of Dos Pinos in Panama, the first thing they will do is help producers increase their production, believing that the country has great potential.

Panama: Investment in Attractive Dairy Market

November 2013

The Costa Rican cooperative Dos Pinos plans to reduce the deficit of 110 million liters of milk registered in the country where 300 million liters is consumed a year.

The Costa Rican firm plans to invest $5 million per year for the next five years as part of its market expansion strategy to position itself in the Panamanian dairy industry.

Panama: Dairy Market Concentration Approved

May 2013

The Defence of Competition Authority has endorsed the sale of Planta Nevada to the Costa Rican company Dos Pinos.

From a press release issued by Cerveceria Nacional SA:

On Tuesday, May 7 ACODECO, The Defence of Competition (or Antitrust) Authority formally communicated through DNLC-Resolution # 012-13 OGC- the approval of the sale of Planta Nevada, producing milk, juices, and soft drinks, belonging to Refrescos Nacionales S.A. a subsidiary of Cervecería Nacional, to Cooperativa de Productores de Leche Dos Pinos R.L.

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