As a result of the closure of Grupo Lala's factory in Costa Rica, the 37 thousand liters of milk that 70 local producers sold daily to the company of Mexican origin were left without a buyer, however, Dos Pinos promised to acquire the product.
On December 1st Grupo Lala informed that it will close the milk plant that operates in the province of Alajuela. According to the company, the factory will stop operating on December 11th.
After Grupo Lala decided to close the operations of its dairy production plant in Costa Rica, a debate began over whether Dos Pinos' dominance in the local market was due to protectionist policies or to the brand positioning, quality and price of its products.
Arguing that there is greater potential for sustainable and profitable expansion in Nicaragua and Guatemala, the Mexican business group dedicated to dairy production decided to close the operations of its production plant in Costa Rica.
From January to July 2020, companies in the countries of the region imported from Mexico infant and toddler formulas for $57 million, and 50% was purchased by companies in Honduras and Nicaragua.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
Following what began as a blockade by Panama on the entry of animal products from Costa Rica, a formal proposal has been made to apply an import tariff to Costa Rican dairy products marketed in the Panamanian market.
In July of this year, Panama informed the National Animal Health Service (SENASA), an agency of the Costa Rican Ministry of Agriculture and Livestock (MAG), of the decision not to extend the export authorization to a list of Costa Rican establishments previously authorized and that have been trading in the Panamanian market for many years.
In Nicaragua, from January to July of this year, exports of livestock products totaled $449 million, 16% more than reported for the same period in 2019, mainly due to increased sales of beef.
Figures from the Export Processing Center (Cetrex) indicate that between January and July 2019 and the same period this year, foreign sales of livestock products increased from $388 million to $449 million.
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.
With no details regarding the amount of the transaction, Coca-Cola FEMSA announced the sale of 100% of its stock interest in the Panamanian dairy company Estrella Azul to Panama Dairy Ventures, Ltd.
The transfer of the shares became known after Coca-Cola sent a communication to the Mexican Stock Exchange, a document that specified some of the details of the transaction.
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.
Because of the crisis generated by the covid-19, businessmen in the country estimate that due to the closure of shops, they are unable to sell an average of 200,000 bottles of milk per day.
According to the Association of Milk Producers of El Salvador (Proleche), national consumption has fallen in the last two weeks, a decline that can be explained by the home quarantine that has been decreed.
After a quarantine was decreed in El Salvador because of the spread of covid-19, there is uncertainty among Nicaraguan producers because the borders may be closed for their products.
Since March 11, Salvadoran President Nayib Bukele has decreed a nationwide quarantine, arguing that there is a risk of spreading the coronavirus to neighboring countries, where there are already several confirmed cases.
An industrial plant for the processing of vegetables, fruits, grains, dairy products, roots and tubers will be built in the canton of Coto Brus, province of Puntarenas.
The Costa Rican government awarded the contract for the construction of this industrial complex to the company Vidalco Empresa Constructora. It is estimated that the overall investment will be approximately $3 million.
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.
From January to September 2019, trade in milk and dairy products among the countries of the region reached $245 million, 2% more than in the same period in 2018.
Figures from the Trade Intelligence Unit at CentralAmericaData: [GRAFICA caption="Click to interact with graphics"]
In the Dominican Republic, the supply of powdered dairy products and their distribution to public schools is being tendered for the 2020 - 2021 school year.
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