The Salvadoran company San Julian has started operating a dairy production plant in Jutiapa with capacity to process up to 100,000 liters of milk per day.
Monday, March 6, 2017
With an investment of $6.4 million the Salvadoran company Tecnolac has set up a dairy production plant in Jutiapa, in order to serve the local market and expand its supply at the regional level.
Federico Fernández, president of Tecnolac, told Agn.com.gt that"... the strategic location of the plant, allows us to have access to the departments of Jutiapa and Santa Rosa, demarcations where there is the highest national milk production."
Fernandez added:"... 'We want to attack the local market and export, exploiting the advantages of free trade and we are interested in leveraging the Mexican market and if possible the Caribbean one'."
"...The company aims to supply supermarket chains, restaurants and hotels in the region."
In terms of volume traded, dairy sales to Guatemala have gained ground and are currently the second most important market for Nicaraguan companies.
During the first quarter of 2021 Nicaragua exported 17.14 million kilograms of dairy products, of the total volume 12 million kilograms were purchased by Salvadoran companies, 2.61 million kilograms were placed in the Guatemalan market and 2.04 million kilograms were traded in the United States.
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.
In 2017, trade in milk and dairy products among countries in the region amounted to $306 million, 2% more than what was sold in 2016, and the highest value in the last six years.
Figures from the Information System on the Milk and Milk Products Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
It is estimated that "the worst of the crisis" in international milk prices could be ending this year, with better levels starting to be established in 2017.
In an event held in Managua, experts from the Pan American Dairy Federation (FEPALE), explained the trend seen in the international price of milk and the effect it has had on exports from countries such as Nicaragua, which ranks as the fourth largest exporter of milk and dairy products in Latin America.
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