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%.
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.
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. "
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.