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 Marketin Central America, compiled by theBusiness Intelligence Unit at CentralAmericaData: [GRAFICA caption = "Click to interact with graph"]
Lactolac has started operating a new production plant in Nejapa, department of San Salvador, for which it required an approximate investment of $15 million.
The Salvadoran government has stated that there are no instructions to establish import tariffs on Salvadoran products in any Honduran government institution.
The Ministry of Agriculture and Livestock may decide to impose tariffs on dairy products from El Salvador in the coming days.
For months, Honduran dairy producers have been complaining to the government about the difficulties they face in selling their products in El Salvador, which could impose additional tariffs on the entry of these products.
For this year, the government authorized the importation of 3,300 tons of whole milk powder, 7,700 tons of skimmed milk powder and 2,750 tons of butterfat.
According to ministerial agreement 012-2018 published on February 17 in the official newspaper La Gaceta, the Honduran government has authorized the entry of a batch of whole and skimmed milk powder, arguing that it is "... due to high rainfall and low temperature that prevailed in the months of November and December, which generated a decrease in the volumes and quality of the milk produced in the Atlantic area."
The sector is backing new destinations such as the Dominican Republic and Cuba, through a commercial mission that will travel to these countries in search of potential buyers.
According to representatives from the Embassy of the Dominican Republic in Nicaragua, the Caribbean country imports from Europe and the US, milk powder, cheese and other dairy products. They explained that the requirements for the entry of products are "technically possible and in sanitary terms are those that are necessary."
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.
In El Salvador, the Ministry of Economy has started an investigation into alleged dumping practices, after Cooperativa Ganadera de Sonsonate filed a complaint against the Costa Rican company Dos Pinos.
The Ministry of Economy ordered an investigation into alleged anti-competitive practices in the dairy products market, specifically related to sales of fluid milk, in the period between July 1, 2016 and June 30, 2017.
Pharmaceutical products, plastic, food preparations, sugar and confectionery, and electrical cables are the main products that are sold to companies in the Dominican Republic.
Figures from the information system "Trade between Central America and the Dominican Republic", compiled by the Business Intelligence Unit at CentralAmericaData: [GRAFICA caption="Clic to interact with the chart"]
The purpose is to take advantage of the surplus milk of the winter season to transform it into powder and export it to markets such as El Salvador and Taiwan.
Elheraldo.hn reports that an executive of the company Lácteos de Honduras (Lacthosa) has announced that they are waiting to obtain certification from the Senasa in order to start exporting.
The producers' association estimates that annual milk production will close at above 900 million liters, which represents an increase of 4%.
Climatic factors such as a less extensive drought and an increase in rains explain, in the view of producers, the increase of around 25 million liters which is expected to be seen in production figures at the close of 2017.
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.
In 2016 Central American countries imported 74,573 tons of cheese and curd, 4% more than in 2015.
Figures from the information system on the Cheese and Curd Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData : [GRAFICA caption = "Click to interact with the graph"]
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