Panama's Dairy Industry: An Overview

Panama's dairy market is a critical sector with substantial influence both regionally and internationally. The industry has been evolving with advancements in production capacity, import-export dynamics, and strategic enhancements in processing technologies. This overview provides a detailed examination of Panama's dairy industry.

Dairy Cattle Population

Panama maintains a substantial dairy cattle population, estimated at approximately 400,000 heads. This cattle population is fundamental to the nation's milk production and supports various allied activities within the dairy market.

Milk Production Volume

The annual milk production volume in Panama stands at 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, showcasing 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 opportunities for export, especially to neighboring countries.

Milk Powder and Whey Production

The production of milk powder and whey in Panama remains relatively limited, with a focus more on fresh dairy products. 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.

Source: Panama Dairy Industry Overview Report - 2023

Modified: 2025/03/12

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