Milk Supply Increases in Central America

The main dairy producers and exporters in the region are preparing for the beggining of operations in Nicaragua by the Mexican dairy plant Lala.

Thursday, December 4, 2014

It is expected that by early 2015 the plant owned by the company Lala will start operating in Nicaragua, meaning that "... Competition for the Central American market over milk and its derivatives will be more intense. "

Francisco Arias, manager of Corporate Relations and Livestock at Dos Pinos, told that "... Dos Pinos has Central America as its main export destination, so they are used to competing at the highest level, both within the region and beyond. The important thing is that this competition complies with the legal and technical rules governing each nation. "

Given this scenario, the dairy companies are preparing regulations to safeguard competitiveness. José Antonio Madriz, President of the National Chamber of Milk Producers of Costa Rica explained that "... Producers in the region as a whole, are preparing technical regulation to standardize the industry and the milk trade in the isthmus. Since there are companies with presentations that are not entirely made of cow's milk, there is an urgency to establish rules for controls. "

More on this topic

Competition, Protectionism and Monopolies

December 2020

After Grupo Lala decided to close the operations of its dairy production plant in Costa Rica, a debate began over whether Dos Pinos' dominance in the local market was due to protectionist policies or to the brand positioning, quality and price of its products.

Although at the beginning of 2019 Lala announced that it had invested $14 million in the purchase of high technology machinery and in the expansion of its dairy plant in San Ramón, province of Alajuela, on December 1, 2020 it informed that they decided to close operations.

Increased Competition in the Dairy Market

May 2017

The Mexican company Lala plans to invest $14 million in the expansion of its plant in Alajuela and to start selling milk and ice cream in the Costa Rican market, starting from 2018.

The investments being made in Central America by companies in the dairy industry reflect the growth potential of this business in the region, where per capita consumption of milk and dairy products has been growing during the last years. 

Costa Rica: Challenges for the Dairy Sector

April 2017

There still remains tasks to be completed in the process of preparing to compete with milk and dairy products, which in 2025 will start to enter the country duty-free under the CAFTA.

In regards to how to prepare for the next market opening, José Antonio Madriz, President of the National Chamber of Milk Producers, told that there still remains work to be done, and that they "... have approached the Ministry of Agriculture and Livestock (MAG) several times, as lead agency, to establish joint plans between the private sector, government, universities and other research centers, but the result is insufficient."

Grupo Lala Buys Dairy Plant in Costa Rica

July 2016

The Mexican company has acquired a dairy production plant in Alajuela and through an agreement with Florida Bebidas will produce and market its products in the country.

The announcement comes days after Nicaraguan authorities blocked entry of Costa Rican dairy products, after Costa Rica denied a permit to the firm Lala to export products from Nicaragua.

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