In Central America more than 6 million people search online and participate in conversations associated with dairy products, with ice cream, fudge and yogurt being some of the products with the greatest presence in consumer interactions.
An analysis of consumer interests and preferences in Central America, prepared by the Trade Intelligence Unit of CentralAmericaData, yields interesting results on people's preferences and tastes in food and other types of products or services.
In the last five years, liquid milk sales in Central America increased 16%, from $3,935 million in 2014 to about $4,566 million in 2019, growth that was boosted by the Costa Rican and Honduran markets.
Figures from the "Liquid Milk Market Snapshot" prepared by the Trade Intelligence Unit of CentralAmericaData, detail that in the last five years the volume consumed at regional level of liquid milk registered an increase, since between 2014 and 2019 it is estimated that demand in Central America rose from 3,907 to 4,202 million liters.
Arguing that quality and health standards are not being met, Salvadoran farmers are asking for greater controls on milk products entering from Nicaragua and Honduras.
CentralAmericaData reports that from January to September 2019 El Salvador was the main buyer of milk and dairy products from the other Central American countries, importing $106 million, of which $78 million was bought from Nicaragua, $14 million from Costa Rica and another $13 million from Honduras.
Between January and September of last year, trade in milk and dairy products between the countries of the region totaled $240 million, and more than 75% was bought by companies in El Salvador and Guatemala.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In the first half of the year, trade in milk and dairy products between Central American countries totaled $151 million, and more than 40% was bought by companies in El Salvador.
Figures from the information system on the Milk and Dairy Market in Central America complied by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
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%.
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"]
Despite the new import requirements imposed by the Salvadoran government, in 2017 the Nicaraguan dairy industry managed to maintain the level of its exports to its neighboring country.
Data from a report by Cetrex shows that 2017 will have closed with growth of just 3% in exports of dairy products to El Salvador, which is positive for entrepreneurs in the sector, who in the middle of the year anticipated less favorable figures, due to the entry into force of themore restrictive import controls.
The Latin American Bank for Foreign Trade has granted Dos Pinos a syndicated loan of $100 million over five years, for three of the companies belonging to the cooperative.
The loan to Cooperativa de Leche Dos Pinos was structured as a "Club Deal" between Bladex, Banco General, S.A. and Banistmo, S.A., who acted as co-structurers.Bladex also serves as the Administrative Agent at the facility.
The Salvadoran government has decided to postpone until November 1 the entry into force of new requirements for importers of dairy products.
After meeting with the heath authorities in Nicaragua, which is where most of El Salvador's imports come from, the Ministry of Agriculture and Livestock (MAG) decided to grant importing companies more time to get up to date with the new health requirements in the new regulations.See "El Salvador Tightens Controls on Dairy Imports"
The dairy sector in Nicaragua anticipates a decrease in exports of cheese and other dairy products to El Salvador, due to more stringent controls imposed recently in this country.
El Salvador is the main export destination for Nicaraguan cheese, and businessmen in the sector expect to feel a negative impact in the coming months due to new rules on importing cheeses and other dairy products which will come into effect in September in that country.See: "El Salvador tightens controls on dairy imports".
The entry of milk from Nicaragua and Honduras has complicated the situation for Salvadoran producers, who are claiming that they are losing 40% of their daily production due to the presence of the imported product.
The Livestock Association of El Salvador (AGES) is complaining that an increase in the presence of imported milk from neighboring countries has depressed prices, making it difficult for them to sell their product.
A report by the SIECA shows the composition and characteristics of the production and export of dairy products in Central American countries.
From the report "Analysis of the Central American dairy market and its derivatives", by the SIECA:
Dairy products constitute a wide range of goods that are important for human consumption, and contribute to the development of local economic activities linked to extraction, processing, industrialization and commercialization.The Food and Agriculture Organization of the United Nations estimates that about 150 million households are engaged in milk production and more than 6 billion people are consumers of milk and milk products.
The Mexican company Lala will be building a milk, ice cream and by-products factory in Guatemala, with capacity to process 5 thousand tons of products per month, and it will start operating in the first quarter of 2018.
The 12 thousand square meter production plant will be built in Escuintla and will have a production line of pasteurized milk, ultrapasteurized (UHT) milk and ice cream.
Suppliers of agroindustrial machinery and equipment are visiting the country in order to explore commercial opportunities with Nicaraguan milk producers.
The Argentine companies that are currently in the country are part of the Argentine Chamber of Manufacturers and Suppliers of Equipments, Supplies and Services for the Milk Chain (Cafypel) and are offering milking equipment, pasteurizers, milk refrigeration equipment, heat exchangers, milk processing equipment and water treatment equipment.Together with the National Institute of Agricultural Technology (INTA) they will be giving technical talks to Nicaraguan producers.