Overview of Colombia's Dairy Industry
Colombia's dairy sector is a vital component of its agricultural landscape, benefiting from advantageous climatic conditions that support a strong supply chain for both local and international markets. The industry plays a crucial role in the national economy, significantly impacting domestic consumption and export activities.
Dairy Cattle
Colombia hosts approximately 8 million dairy cattle, dispersed across various regions. This extensive cattle population underpins the country's dairy production capabilities, ensuring a continuous supply of raw milk for processing and consumption.
Milk Production and Processing
Annually, Colombia produces about 7 billion liters of milk, with around 4.5 billion liters processed to satisfy the demands of both domestic and export markets. The processing sector is essential for maintaining industry stability and meeting diverse consumer needs.
Cheese and Milk Powder Production
Colombia produces approximately 400,000 tons of cheese each year. Additionally, the production of milk powder and whey reaches about 200,000 tons, catering to both domestic consumption and export demands, demonstrating the industry's adaptability and capacity.
Key Dairy Enterprises
Prominent companies such as Alquería, Colanta, Laude, Parmalat (under Lactalis), and Alpina are integral to Colombia's dairy industry. These organizations are instrumental in maintaining competitiveness and driving sector growth.
Prominent Dairy Farms
Key farms contributing to Colombia's milk production include Hacienda San José, La Esperanza Farm, Granja La Margarita, El Rodeo Farm, and Finca San Rafael. These farms are crucial for sustaining the supply of high-quality raw milk.
Trade and Market Dynamics
Colombia exports around 150,000 tons of dairy products annually to regions including Latin America, Europe, and Asia. To meet specific domestic demands, the country imports about 100,000 tons of dairy products. This trade balance is vital for industry growth and adaptation to market needs.
Significant Events
Lactalis is expanding its processing capacities and exploring new export opportunities, impacting the market landscape. Government initiatives, including subsidies and technological advancements, aim to support industry development. Tariff negotiations with the U.S. concerning powdered milk and cheese exports significantly shape market dynamics. The Bolsa Mercantil of Colombia has launched a new auction cycle to effectively balance milk product supply and demand. Recent changes in the milk payment system by the Ministry of Agriculture are affecting producers and their operations.
Current Challenges and Future Outlook
In 2024, the Colombian dairy sector faced challenges such as declines in production, sales, and employment. However, projections for 2025 are optimistic, with expectations to collect approximately 3.3 billion liters of raw milk. Despite regulatory challenges, the sector is experiencing growth in international sales and a reduction in bonuses for ranchers. Consumption of fluid milk is declining, with per capita consumption falling from 142 liters annually in 2016 to about 132 liters in 2023. However, other dairy products like yogurts, cheeses, and butters are gaining popularity, indicating opportunities for diversification with artisanal cheeses, functional yogurts, and fortified beverages.
Colombian livestock, particularly dairy farming, faces numerous challenges, but the cooperative model offers hope, integrating over 500 families into productive networks and achieving significant economic, social, and infrastructural advancements. Colombian producers focus on innovation and sustainability, navigating the complexities and risks of displacing local dairy farmers with biotechnological advancements. The University of Cundinamarca's introduction of a UV light method to improve milk hygiene in Ubaté is an example of innovation aimed at enhancing raw milk quality and promoting sustainable dairy industry development.
Colombian dairy exports have surged by an impressive 75% in 2025, with exports increasing from 2,994 tons in 2024 to 5,238 tons in 2025. The sector's annual production ranges between 7 and 8 billion liters, generating over a million formal jobs. Colombia's largest B Corporation leads the dairy industry with a triple impact model. Alquería is a benchmark for the agro-industrial sector in Colombia and Latin America, focusing on social, environmental, and economic sustainability.
Modified: 2025/07/26