Nicaragua's Dairy Industry Overview
Nicaragua stands as a distinguished producer of dairy products within Central America. As a member of the Central America-Dominican Republic Free Trade Agreement (CAFTA), the country has strategically strengthened its dairy export markets by leveraging reduced tariffs, particularly towards the United States and other neighboring regions.
Dairy Cattle Population
With a robust population of approximately 1.1 million dairy cattle, Nicaragua plays a pivotal role in the agricultural landscape of the region. This substantial livestock underpins the country's capacity to sustain and potentially expand its dairy production.
Milk Production Volume
The total annual milk production in Nicaragua is around 1.4 billion liters, positioning the country as a major producer in the region. This production significantly contributes to the local economy, supporting both domestic consumption and international markets.
Milk Processing Volume
Nicaragua processes about 800 million liters of milk annually. This reflects a developing processing sector, bolstered by technological advancements and improvements in infrastructure.
Cheese Production Volume
Nicaragua is renowned for its traditional dairy products, such as queso fresco, with an annual production of approximately 60,000 metric tons of cheese. This production supports both local demand and potential export opportunities.
Milk Powder and Whey Production
The production of milk powder and whey in Nicaragua is estimated at 10,000 metric tons per year, catering to domestic needs and facilitating export opportunities in specialized markets.
Key Dairy Plants
Centrolac is a major dairy processor known for a diverse array of dairy products. Eskimo is renowned for its ice cream, yogurt, and various dairy goods.
Key Dairy Farms
Santa Emilia Farm is a major supplier of local milk, noted for sustainable practices. La Esmeralda Dairy Farm is known for quality dairy cattle and innovative farming techniques.
Export of Dairy Products
Nicaragua exports approximately $150 million worth of dairy products annually, targeting the United States, El Salvador, and other Central American countries, thereby strengthening its position in the regional dairy market.
Import of Dairy Products
The country imports about $20 million annually in dairy products, reflecting its strong domestic production capabilities and limited dependence on external sources.
Dairy Market Events
Recent developments in Nicaragua's dairy industry include investments in expanded processing capabilities and active participation in international dairy fairs. These efforts complement the opportunities provided by CAFTA, especially in terms of exports to the U.S. market. In 2024, dairy production in Nicaragua marked a 1.6% growth, supported by its 112,000 active dairy farms.
Notably, Nicaragua recently announced its withdrawal from the Food and Agriculture Organization of the United Nations (FAO), citing disagreements with the organization's latest food security report for 2024. The dairy industry in Nicaragua has seen substantial growth, with cheese production reaching 194.9 million pounds in 2025. This increase in production reflects the expanding capabilities of the sector within the Central American country.
The rise in cheese production has played a significant role in enhancing the value-added processes within the Nicaraguan dairy industry. This growth is also linked to the creation of employment opportunities in rural areas, contributing to the country's economic development. Nicaragua's focus on expanding its dairy production capabilities aligns with its strategy to boost the agro-industrial sector and improve its competitive edge in regional markets.
Nicaragua's dairy sector achieved a production level of 370 million gallons in 2025. This output reflects a noteworthy recovery and stabilization in the country's dairy sector, following various challenges in previous years. The increase in production can be attributed to improved farming practices, favorable weather conditions, and investments in modern dairy processing technologies.
Modified: 2026/02/07