Colombia's Dairy Industry Overview

Colombia's dairy sector is an essential part of its agricultural landscape, supported by a favorable climate and an efficient supply chain that caters to both domestic and international markets.

Dairy Cattle

Colombia is home to approximately 8 million dairy cattle spread across various regions, contributing to a resilient and reliable dairy production capacity.

Milk Production and Processing

Annually, Colombia produces around 7 billion liters of milk. Of this total, 4.5 billion liters undergo processing, ensuring a stable supply for local consumption and international exports.

Cheese and Milk Powder Production

Cheese production in the country reaches approximately 400,000 tons annually, while milk powder and whey production amount to roughly 200,000 tons, meeting both domestic and export demands.

Key Dairy Enterprises

Significant players in the Colombian dairy industry include companies such as Alquería, Colanta, Laude, Parmalat (under Lactalis), and Alpina. These enterprises are vital for maintaining industry competitiveness and fostering growth.

Prominent Dairy Farms

Leading farms contributing to national milk production include Hacienda San José, La Esperanza Farm, Granja La Margarita, El Rodeo Farm, and Finca San Rafael.

Trade and Market Dynamics

Colombia exports approximately 150,000 tons of dairy products annually to markets across Latin America, Europe, and Asia. To meet specific domestic needs, it imports about 100,000 tons of dairy products.

Significant Events

• Lactalis's expansion plans are focusing on enhancing processing capacities and export opportunities.
• Government initiatives, including subsidies and technological advancements, are aiding industry development.
• Tariff negotiations regarding U.S. powdered milk and increased U.S. cheese exports are shaping the market.
• The Bolsa Mercantil of Colombia has launched a new auction cycle to balance the supply and demand of milk products.
• Recent revisions in the milk payment system by the Colombian Ministry of Agriculture are impacting producers.

Current Challenges and Future Outlook

In 2024, the Colombian dairy sector faced challenges with declines in production, sales, and employment. However, projections for 2025 are optimistic, with expectations of collecting approximately 3.3 billion liters of raw milk. Despite regulatory hurdles, the sector is witnessing growth in international sales and a reduction in bonuses for ranchers. The debate over using lactoserum as a milk substitute continues, even as the National Dairy Council announced a 5.36% increase in the base milk price, supporting rural development. Colombia ranks as the second-largest exporter of livestock genetics in Latin America, reflecting its influence in the agricultural field.

Lactalis, owner of Parmalat, is disputing a major fine imposed by the Colombian Superintendency of Industry and Commerce (SIC) concerning the alleged dilution of whole milk products with whey. The cattle export sector in Colombia saw notable growth in early 2025, driven by rising sales to key international markets.

Chocontá is expanding its milk production capabilities with departmental assistance, strengthening Colombia's dairy industry further. The surge in imported powdered milk and dairy products threatens Colombian farmers, affecting the entire sector. 'Milo' is a staple in Colombian households, consumed in various forms, such as hot, cold, or sprinkled on a 'cholao'.

The multinational Lactalis faces a major legal battle to defend against claims of adding whey to milk in Colombia.

Modified: 2025/05/09

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