Overview of Colombia's Dairy Industry
Colombia's dairy sector is an indispensable element of its agricultural landscape, benefiting from favorable climatic conditions that bolster a strong supply chain for both local and international markets. The industry plays a vital role in the national economy, significantly impacting domestic consumption and export activities.
Dairy Cattle
Colombia hosts approximately 8 million dairy cattle spread across various regions. This extensive cattle population underpins the country's dairy production capabilities, ensuring a steady 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 both domestic and export market demands. This processing sector is crucial for maintaining industry stability and catering to 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, addressing both domestic consumption and export requirements and demonstrating 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, 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 focus on reducing greenhouse gas emissions, optimizing water usage, 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 faces increasing challenges as imports reached 30,285 tonnes valued at $99 million between January and May 2025, 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.
Innovations and Strategic Developments
Equslac plans to export lyophilized donkey milk powder to Colombia, indicating the country as a target market for their expansion plans. ALSEC in Colombia is transforming whey, a dairy byproduct, into high-value protein using nanotechnology. Strategically, Alsec’s project supports Colombia’s food security by potentially substituting nearly 60% of its imported dairy protein, strengthening national food sovereignty.
Community Initiatives and International Relations
In the heart of Colombia's cattle farming region, a story of resilience and success unfolds. In the municipality of Tesalia, Huila, small farmers have transformed their operations through cooperation and education, supported by organizations like Asopegate and Fedegán. Colombia is intensifying efforts to expand its dairy exports to Chile. Colombia is at a pivotal stage in strengthening its presence in Chile's dairy market, with support from Invima and SAG. The initiative seeks to renew authorization of Colombian establishments permitted to export and to evaluate new plants aspiring to enter the market. The Colombian government has taken a significant step to ensure food safety by suspending the sale of popular powdered milk brands due to adulteration concerns, sending shockwaves through the country's dairy sector. The rise in dairy imports in the first half of 2025 alarms local producers in Colombia, threatening the industry's sustainability. A substantial increase in dairy imports during the first half of 2025 in Colombia has set off alarm bells among local producers, who are concerned about the sector's sustainability. The imports have seen a significant surge, which has worried national producers. Farmers and milk producers warn that this trend endangers the local industry's sustainability. Colombian producers face a tough choice: cut prices to maintain market share, risking profitability, or keep prices steady and face potential displacement by imports. Local initiatives in Colombia's Tolima region aim to add value to milk by diversifying production with cheese and other derivatives. In the municipality of Roncesvalles in Tolima, Colombia, local dairy producers are spearheading an initiative to transition from selling raw milk to transforming it into higher-value products such as cheese and yogurt.
Modified: 2025/09/05