Panama's Dairy Industry: An Overview
Panama's dairy market plays a crucial role in the regional and international dairy sector. The industry has been evolving with advancements in production capacity, import-export dynamics, and strategic enhancements in processing technologies.
Dairy Cattle Population
Panama sustains a substantial dairy cattle population, estimated at approximately 400,000 heads. This cattle population is essential for the nation's milk production, supporting various allied activities within the dairy market.
Milk Production Volume
The annual milk production volume in Panama is approximately 280 million liters. This volume significantly supports domestic demand for dairy products and supplies local dairy processing facilities.
Milk Processing Volume
Panama processes around 220 million liters of milk each year, demonstrating growth in its processing capacities. The focus has been on enhancing the processed dairy product portfolio to add more value and diversify market offerings.
Cheese Production Volume
Panama produces about 10,000 metric tons of cheese annually. This production level not only satisfies local consumption but also presents export opportunities, especially to neighboring countries.
Milk Powder and Whey Production
The production of milk powder and whey in Panama remains relatively limited, focusing more on fresh dairy products. The production volume is approximately 1,500 metric tons per year.
Key Dairy Enterprises
Prominent dairy processing plants include Estrella Azul and Productos Nevada, which are key players in processing and distributing dairy products nationwide. Notable dairy farms such as Hacienda La Esmeralda and Finca Santa Teresa are recognized for their superior milk quality and serve both domestic and international markets.
Export and Import of Dairy Products
Panama exports dairy products worth around USD 20 million annually, primarily targeting Central American markets. There has been a noteworthy 39% increase in cheese imports from the United States, indicating a consumer trend towards diverse and high-quality cheese products.
Significant Events in the Dairy Industry
Panama has experienced significant events such as strategic changes to open its market for a wider range of international dairy products, highlighted by increased U.S. cheese imports. This strategy is complemented by national efforts to modernize dairy farms and processing facilities, leveraging cutting-edge technology and improved practices for greater self-reliance and enhanced export potential. Recently, Panama is positioning to strengthen its dairy market after a WTO ruling impacted trade relations with Costa Rica. Additionally, the inauguration of Cooleche\'s new plant in Boquerón, Chiriquí aims to boost production and competition utilizing advanced technology. The Panamanian government, through the Ministry of Commerce and Industries (MICI), has launched an investigation into the possible activation of the Special Agricultural Safeguard Mechanism under the Trade Promotion Agreement (TPA) with the United States.
The dairy sector in Panama raises concerns about excessive imports from the US impacting local producers. The industry has issued a serious warning about the potential impact of massive dairy product imports from the United States, threatening the entire dairy value chain and posing a risk to the economic and operational sustainability of local producers.
The Panamanian dairy sector explores options following a temporary suspension of raw milk collection. The Panamanian dairy industry is on high alert after a major processing company decided to temporarily halt milk collection, causing a supply overload crisis and significant financial losses for producers.
Modified: 2025/08/14