Overview of Bolivia's Dairy Industry

Bolivia is solidifying its position as a significant force in the regional dairy market. The country's strategic geographic location and membership in trade alliances such as the Andean Community (CAN) have facilitated the efficient management of substantial volumes of dairy imports and exports, enhancing its economic standing in South America.

Dairy Cattle and Milk Production

The foundation of Bolivia's dairy industry consists of approximately 200,000 head of dairy cattle, producing around 600 million liters of milk annually. This substantial production not only meets domestic consumption needs but also serves regional demands, reinforcing Bolivia's role in the South American dairy market.

Milk Processing and Product Manufacturing

From the total milk produced, around 400 million liters are processed each year by Bolivia's leading dairy enterprises. The country produces nearly 40,000 tons of cheese annually, along with approximately 15,000 tons of milk powder and whey, much of which is intended for export markets.

Key Dairy Enterprises

  • Lácteosbol
  • PIL Andina
  • La Francesa
  • Delizia

Notable Dairy Farms

  • Fundo Bolivia Dairy Farm
  • Chavez Dairy Farm
  • Santa Ana Dairy Farm

Export and Import Dynamics

Bolivia actively exports approximately 10,000 tons of dairy products annually, including cheese and milk powder. Colombia is a major importer within the Andean Community, especially of the 7,000 tons of milk powder exported. Conversely, Bolivia imports around 7,000 tons of powdered milk each year, facilitated by CAN trade agreements.

Significant Events and Challenges

Bolivia has made significant advancements in dairy production infrastructure through modernization and strategic investments, primarily supported by trade agreements like CAN. Recent efforts to expand exports to Chile, including products such as fluid milk, yogurt, and cheese, highlight the sector's promising growth. However, challenges persist, as a recent crisis in the dairy sector revealed pricing issues that often fall short of production costs, risking farm closures. Over 100 dairy farms have closed recently, underscoring the crisis's severity.

Noteworthy progress includes the approval of three dairy plants for export by Chile, including Pil Andina in Cochabamba, Pil Andina in Santa Cruz, and an Empresa Boliviana de Alimentos (EBA) plant in Ivirgarzama, Cochabamba. This initiative is expected to significantly boost the Bolivian agro-industrial sector by diversifying markets and creating new export opportunities.

Milk producers in Cochabamba have held intermediaries accountable for a recent increase in milk prices in La Paz and Santa Cruz. Despite the deep crisis and farm closures, producers maintain regulated costs. However, price manipulation by sellers affects both producers and the Bolivian population.

The state-owned dairy plant in Achacachi, managed by the Empresa Boliviana de Alimentos (EBA), is a notable success in Bolivia's dairy industry, generating Bs 38.3 million and benefiting over 1,200 producers. This plant has proven to be an economic boon, demonstrating the potential of public investment in the agro-industry sector.

The dairy sector in Bolivia is facing a deep crisis due to a sharp decline in milk production from 350,000 to 230,000 liters daily, attributed to the closure of 120 dairy farms. This situation is blamed on diesel shortages and excessive government regulation, with repercussions extending beyond the domestic market and affecting Bolivian dairy exports as well.

Modified: 2025/10/13


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