The Dos Pinos Costa Rican dairy cooperative is negotiating the purchase of a plant in Nicaragua and is working on setting up another one in the Dominican Republic.
In an interview Nacion.com by Marvin Barquero with Rodolfo Barrantes, president of Dos Pinos, the official confirmed that the regional expansion strategy of the company is still moving forward.
In recent years dairy imports increased by between 20% and 30% a year, since China can not meet domestic demand with its own production.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
Growing demand for dairy products in China, at present, not can not be met by domestic production, therefore it will remain a major importer of dairy products internationally.
The Mexican company will invest $50 million in a plant to process 200,000 liters of milk a day.
The information was released by Alvaro Baltodano, presidential delegate for investment, adding that Lala will process 75% of the milk produced in the country, because Nicaragua only takes advantage of 25% of what it produces.
"The ideal would be to process 75% of the milk that we are currently not processing.
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).
The Government has confirmed the arrival of Grupo Corporativo Lala, which will start operating this year with a plant for processing 200,000 liters of milk.
"We're talking about more than fifty million (dollars) in investment by Grupo Lala in the first stage," said Alvaro Baltodano, presidential delegate for investment promotion.
"Lala is coming to Nicaragua to invest and it aims to develop the dairy sector in Nicaragua.
In what milk processing companies see as a threat, dairy producers are hailing as an opportunity to grow and to enjoy stable prices.
According to an article in Laprensa.com.ni, "the immediate concern of the companies, Centrolac, Parmalat and Eskimo is a lack of clarity over the benefits being offered by the Government to Grupo Corporativo Lala to encourage them to finally decide to invest in Nicaragua, after years of perseverance."
The arrival of the Grupo Corporativo Lala could increase demand for raw materials and push up prices.
"The heads of the three major dairy companies, Centrolac, Eskimo SA and Parmalat, have been reviewing the context under which Lala will operate in the country, but they are especially worried about the increased pressure on the milk collection chain and its effect in supplying Nicaragua's domestic and export markets" reports Laprensa.com.ni.
Fruit-flavored yogurts dominate 75% of market share in U.S. and 70% in Latin America.
From an article by the Costa Rican Foreign Trade Promotion Office (PROCOMER):
According to a report by Innova Market Insights, a market research company, fruit flavors dominate the yogurt market, having captured two-thirds of the global market in the twelve months ending March 2013, a share which is greater in the U.S.
Global consumption of milk shakes will more than double in the next three years, as consumers prefer nutritious shakes in convenient packaging as an alternative to other beverages.
From a press release issued by the company Tetra Pak:
The sixth Tetra Pak Dairy Index highlights the increasing demand for ready to drink shakes, driven by health conscious consumers and its flavor.
Starting from May 1st new regulations in China came into force which govern inspection, quarantine and supervision of imports and exports of dairy products.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
The General Administration of Quality Supervision, Inspection and Quarantine of China (AQSIQ by its acronym in English) recently released two statements, which regulate Decree No.
Panamanian food authorities have given permission for six facilities to export Uruguayan dairy to that market.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
On Wednesday May 22 this year, both the General Director of the Ministry of Livestock, Agriculture and Fisheries of Uruguay (MGAP) Alberto Castelar, and the Director of the International Affairs Unit Alejandro Mernies of the same ministry announced a new breakthrough in international integration as part of the Government's strategic guidelines in market diversification.This news was that Panamanian food safety authorities have given permission for six facilities to export Uruguayan bovine dairy products to that market.
Footwear, textiles, dairy and meat are some of the goods that have potential to be exported to the Caribbean island.
According to Alfredo Lacayo CEO of Centrolac and the person who led a trade mission of the Chamber of Industries of Nicaragua (Cadin) which traveled to Cuba on May 13, in the case of the dairy industry, the next step is to apply to the Ministry of Health of Cuba to send staff to inspect the Nicaraguan plants in order to certify them for export to that market.
Chinese consumers increase their consumption of foreign dairy products because they distrust local brands in light of food safety scandals.
From an article by the Costa Rican Trade Promotion Office (PROCOMER):
Chinese consumers have shown a tendency to purchase dairy products from foreign countries, because of lack of confidence in local brands after the food safety scandals which occurred in the country.
The Government has announced that the Mexican group Lamas plans to build a milk processing plant on Nicaraguan soil.
Through official media, the First Lady of Nicaragua, Rosario Murillo reported on the possibility of investing in a milk processing plant and dairy products in conjunction with Grupo Lamas of Mexico, in order to supply the Central American market.