Guatemala's Dairy Industry Overview

Guatemala is a key player in the Central American dairy sector, characterized by a mix of local dairy production and substantial reliance on imports to satisfy domestic consumption needs. Most dairy imports originate from the United States, highlighting a gap between local production and demand.

Dairy Cattle and Milk Production

With an estimated 1 million dairy cattle, Guatemala's annual milk production is around 465 million liters. The country's varied geography, encompassing lowland plains and highland regions, supports diverse dairy farming practices essential for maintaining its milk production capabilities.

Milk Processing and Cheese Production

Guatemala's milk processing capacity reaches approximately 300 million liters annually. Processing plants adhere to international standards to produce a variety of dairy products, including fresh milk, cheese, and yogurt. Notably, cheese production in the country amounts to about 25,000 tons per year.

Milk Powder and Whey Production

While the focus remains on fresh milk products, Guatemala's production of milk powder and whey is limited. These products are primarily imported to meet local demand, indicating potential growth opportunities in domestic production capacities.

Key Dairy Enterprises and Farms

Major players in Guatemala's dairy sector include Productos Lácteos Parmalat and Distribuidora Maravilla. These companies are integral to the milk processing and distribution networks. The supply chain is supported by numerous local dairy farms, ranging from small-scale family-run operations to larger industrial enterprises.

Export and Import Dynamics

Guatemala exports approximately 10 million liters of milk annually, mainly to neighboring countries. However, imports far exceed exports, with over 500 million liters of milk and dairy products imported each year, predominantly from the United States. This reliance on imports highlights the insufficiency of local production to meet growing demand, especially in urban areas.

Dairy Market Events

Recent developments in Guatemala's dairy market emphasize initiatives to enhance local production through investments in advanced dairy technologies. Strategic alliances with international dairy firms aim to improve the efficiency and quality of local production processes. Participation in regional dairy trade fairs and agreements with Central American neighbors further underscores Guatemala's commitment to strengthening its position in the broader dairy market.

Despite the dependency on dairy imports, the potential for expanding local production and processing offers significant opportunities for growth and increased self-sufficiency. The Central America-Dominican Republic Free Trade Agreement (CAFTA) provides additional opportunities by reducing tariffs and fostering trade with the U.S. and six Central American countries, including Guatemala. Notably, Guatemala experienced a 16% year-on-year increase in U.S. cheese imports. Additionally, a trade pact between USDEC, NMPF, and Guatemala's ASODEL aims to further integrate and foster growth within the dairy sector.

Guatemala is also a key market for Chilean infant formula exports, with a remarkable 28.9% increase in exports, highlighting its significance alongside other markets such as the United States, Nicaragua, and Honduras.

Modified: 2025/09/12

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