Overview of Colombia's Dairy Industry
Colombia's dairy sector is a vital part of its agricultural landscape, thriving due to advantageous climatic conditions that support a strong supply chain for both local and international markets. The industry significantly impacts the national economy, influencing domestic consumption and export activities.
Dairy Cattle
Colombia is home to approximately 8 million dairy cattle, distributed across various regions. This extensive cattle population is essential for the country's dairy production capabilities, ensuring a continuous supply of raw milk for processing and consumption.
Milk Production and Processing
Each year, Colombia produces about 7 billion liters of milk, with around 4.5 billion liters processed to meet the demands of both domestic and export markets. This processing sector is vital for maintaining industry stability and catering to diverse consumer needs.
Cheese and Milk Powder Production
The country produces approximately 400,000 tons of cheese annually. Additionally, the production of milk powder and whey reaches about 200,000 tons, addressing both domestic consumption and export demands, showcasing the industry's adaptability and capacity.
Key Dairy Enterprises
Prominent companies such as Alquería, Colanta, Laude, Parmalat (under Lactalis), and Alpina are pivotal 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.
Sustainability Efforts
Nestlé Colombia's sustainability strategies encompass multiple fronts, including the reduction of greenhouse gas emissions, water usage optimization, and responsible waste management. The company is investing in cleaner technologies and promoting sustainable agricultural practices with its suppliers, crucial in the production of milk and other agricultural products in Colombia.
Import Challenges
The Colombian dairy sector is facing increasing challenges as imports reached 30,285 tonnes valued at $99 million between January and May 2025. This represents a slight increase from 29,417 tonnes worth $94.1 million over the same period in 2024. Products such as skimmed milk powder, whole milk powder, fresh cheeses, and whey, primarily imported from the United States, highlight the country’s reliance on external dairy products.
Social and Economic Impact
Protests in Boyacá, Colombia, led by miners and local communities, have halted transportation, impacting milk distribution. The ongoing crisis in Boyacá endangers milk distribution, raising concerns about potential shortages. Protests have stopped transportation on key routes, affecting dairy supply chains and major urban centers like Bogotá. Colombia's livestock sector, with 30 million cattle, creates over 1 million jobs. The bovine industry plays a crucial role in rural economic development, generating over 1 million jobs. With an increase in cattle numbers from 20.4 million in 2001 to 30.1 million in 2024, the sector has shown significant resilience and expansion over the past two decades. This increase has contributed to creating approximately 200,000 new jobs. Employment in the sector is predominantly in dual-purpose livestock farming, specialized dairying, and breeding. The thriving internal market and ongoing growth in exports contribute to the sector's stability, making it a major employer in rural areas. The Colombian livestock sector has reached a significant milestone, realizing its best export performance in the last four years. Livestock exports, including meat, dairy, and live animals, surpassed USD 216 million in the first half of 2025, indicating the sector's recovery in foreign trade. Beef and bovine offal exports reached USD 89.5 million, with China, Algeria, and Russia as key markets. Live animal exports reached USD 101.2 million, with Egypt, Iraq, and Saudi Arabia as major buyers. The dairy sector contributed with exports valued at USD 25.6 million, with Venezuela as the main destination. Despite the vibrant market, challenges loom in the form of import tariffs, supply chain constraints, and price pressures, notably with tariffs affecting imports from Colombia.
Equslac plans to export lyophilized donkey milk powder to Colombia, indicating the country as a target market for their expansion plans.
Modified: 2025/08/15