Salvadoran Dairy Farms Face 15% Production Decline Amid Rising Costs

Salvadorean Dairy Sector in Crisis

The Salvadoran Association of Dairy Producers and Industrialists (Asileche) has reported a 15% decline in dairy production across Salvadoran farms. This downturn is attributed to persistent high production costs, despite expectations for reductions in the price of necessary supplies, such as feed concentrates.

Industry Concerns

During a recent business gathering, Vilma de Calderón, the president of Asileche, highlighted the critical situation faced by the sector due to these economic pressures. She noted that small and medium-sized dairy farms have been particularly hit hard, leading to a reduction in their numbers to approximately 50,000 active farms.

Challenges and Initiatives

The executive director of Asileche, Lorena Heredia de Amaya, acknowledged ongoing efforts to enhance production lines and explore alternative nutritional options. Nevertheless, she emphasized the need for further improvements in milk quality, establishment of collection centers, and formalization of dairy farmers to stimulate production growth.

Government Support Sought

De Calderón has called on the government for more robust support, particularly in the eastern regions of the country, aiming for technical assistance programs that could increase the efficiency of milk production on farms.

Market Dynamics

El Salvador remains the second-highest per capita consumer of dairy products in Central America, following Costa Rica. The high domestic demand necessitates significant imports to meet consumer needs, with 40% of the dairy market comprising imports, mainly from Nicaragua. Meanwhile, exports have shown growth, with increased shipments to countries like the United States and Guatemala.