Nicaragua's Dairy Industry Overview

Nicaragua stands out as a significant producer of dairy products in Central America, driven by a robust dairy industry. As a member of the Central America-Dominican Republic Free Trade Agreement (CAFTA), Nicaragua has enhanced opportunities for expanding its dairy export markets, especially with reduced tariffs to the United States and neighboring regions.

Dairy Cattle Population

With approximately 1.1 million dairy cattle, Nicaragua plays a pivotal role in its agricultural landscape. This substantial livestock population underscores the country's capacity to maintain and grow its dairy production.

Milk Production Volume

The total annual milk production in Nicaragua is around 1.4 billion liters. This positions the country as one of the major producers in this region, significantly contributing to the local economy and supporting both domestic and international markets.

Milk Processing Volume

Nicaragua processes about 800 million liters of milk annually. This volume showcases a developing processing sector supported by technological advancements and improved infrastructure.

Cheese Production Volume

Known for its traditional dairy products like queso fresco, Nicaragua produces approximately 60,000 metric tons of cheese annually, supporting both local demand and potential exports.

Milk Powder and Whey Production

The production of milk powder and whey is estimated at 10,000 metric tons per year, meeting domestic needs and facilitating export opportunities in specialized markets.

Key Dairy Plants

• Centrolac: A major dairy processor in Nicaragua known for a diverse array of dairy products.
• Eskimo: Renowned for its ice cream, yogurt, and various dairy goods.

Key Dairy Farms

• Santa Emilia Farm: A major supplier of local milk known for sustainable practices.
• La Esmeralda Dairy Farm: Known for its quality dairy cattle and innovative farming techniques.

Export of Dairy Products

Nicaragua exports approximately $150 million worth of dairy products each year, targeting the United States, El Salvador, and other Central American countries, 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.

Modified: 2025/03/12

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