Between 2017 and 2018, milk sales from Costa Rica to Panama fell 24%, explained by increased competition, while exports to Guatemala and the Dominican Republic increased 21% and 13%, respectively.
According to figures from the Promotora del Comercio Exterior (Procomer), between 2017 and 2018 sales to Panama of milk and cream not concentrated and concentrated registered a 24% decline, falling from $7.5 million to $5.6 million.
The regional guild of the sector reported that the volume of milk produced by the countries of the region increased from 3.5 to 3.7 million metric tons between 2015 and 2016.
According to figures from the Central American guilds, the increase in global production registered in 2016, when the most updated statistics exist as a region, is explained by increases reported in all countries, mainly from Costa Rica with 18%, followed by El Salvador with 14%, Guatemala with 13%, Panama with 6%, and Honduras with 4%.
According to the sector's union, in 2017 consumption of milk and its derivatives reached 212 liters per capita, 33% above the level recommended by international health agencies.
According to the National Chamber of Milk Producers (Caprole), growth in milk production recorded in the country in recent years, is explained by an increase in domestic demand and a rise in exports to Central America and the Caribbean.
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 Nacion.com 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."
Infant milk formula and yogurt are the derivatives which recorded the highest increases in demand between September 2015 and August 2016, compared to the same period last year.
The figures presented in the National Dairy Congress in Costa Rica, held in October, indicate that demand for dairy products grew at a rate of 6.5% last year, driven by increased demand for products such as yogurt in its different presentations, milk formula and cheese, among things.
Nicaraguan health authorities have restricted access to products elaborated by the Costa Rican company Dos Pinos and two other companies for failing to obtain health certification for their processing plants.
In a circular apparently issued by the company Dos Pinos, the entity may have indicated to its customers that due to non-renewal of health certificates for the industrializing plant they may not be able to continue expending their products until the situation has been resolved.This is the version stated by Laprensa.com.ni, who also explained that the Country manager at Dos Pinos in Nicaragua, Oswaldo Gonzalez Quijano said in the document"... The measure taken by the Government of Nicaragua 'has no technical basis'."
The total amount of exported kilos of milk rose from 76 million in 2013 to 92 million in 2014, with the number one destination being Central America, mainly Guatemala and El Salvador.
Data from the National Chamber of Milk Producers (Caprole) indicates that after Guatemala and El Salvador, the rest of the isthmus is the main market for exports of Costa Rican milk, but the Dominican Republic, Cuba and Venezuela are beginning to have greater preponderance among the markets where milk produced in Costa Rica arrives.
Costa Rican dairy farmers have denounced the fact that in the region regulations are not met nor are specifications on labeling and product features.
The Chamber of Milk Producers (CPL by its initials in Spanish) argues that there are companies in the region that are replacing animal protein with plant protein, or decreasing the percentage of fat in exchange for lowering the price of the product, which is not in compliance with the requirements and standards set out in the Central American technical regulations.
The main dairy producers and exporters in the region are preparing for the beggining of operations in Nicaragua by the Mexican dairy plant Lala.
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. "
Annual consumption per person increased from 182 liters in 2005 to 202 liters in 2013, while domestic production increased 18% between 2009 and last year.
Increased consumption of yogurt, ice cream, cheese, sour cream and flavored milks explains much of the increase in sales of milk products in general in recent years and the increase in national milk production, which rose from 890,000 tonnes in 2009 to 1,055,000 tons in 2013, according to the National Association of Milk Producers.
Producers are predicting lower production and an increase in costs because of the effects of El Niño, estimating a 15% drop in milk production in September and October.
The National Association of Milk Producers of Costa Rica (Proleche) does not believe that the end consumer prices will increase substantially, but estimates an increase in maintenance costs of farms because of climatic effects on soils.
While the average milk consumption per person in Central America is less than 100 kilos per year, Costa Ricans consume twice that amount in the time span.
According to the Foreign Trade Promotion Office (PROCOMER) from 2009 to 2013, imports of dairy products grew by 80%. The top dairy products entering the market are cheeses, due to product diversification, the positive attitude of local consumers to new flavors and the high resistance of the product during transportation and distribution.
One by one the main leaders of Costa Rican business associations have expressed their appreciation and optimism for the agreements reached with the Chinese government.
The Costa Rican business sector believes that the decisions taken by the Governments of Costa Rica and China will help, directly or indirectly, the Costa Rican economy.
According to Alvaro Saenz, president of the Chamber of Agribusiness, "with China even if you have a Free Trade Agreement (FTA), if you dont have health care protocols, products can not enter, so it is very important to have signed these protocols and have ratified them so that access is granted. "
After buying a dairy cooperativas, Florida Bebidas has launched its brand of milk Mu!, and also will be competing in sour cream, ice cream, yogurt and cream.
The new products will be launched next Monday. The milk product Mu! will be offered in two forms, in a long life plastic bag and in Tetra Brik.
The director of the Division of Florida Dairy Drinks and Beverages, Rafael Segovia, told Nacion.com "that the products will be launched on the market with a price which is 5% lower than the leading brand. However he did not refer to its objectives in terms of market size or goals in that sense in the short or medium term ... he classified the Florida’s dairy section as small and emphasized that they sell high quality products, ... "
Milk production in Costa Rica grew by 1.5% in 2011 compared to the figures from 2010. Dos Pinos, the market leader, expects to process 5% more in shipments of milk in 2012.
In 2012, the nation's milk production for both domestic consumption and for export, was about 967 million liters, an increase of 1.5% compared to 2010, estimated the National Milk Producers association (Proleche).