Panama's Dairy Industry Overview
Panama's dairy market is a pivotal part of the regional and international dairy sector, characterized by its evolving 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 population is crucial for supporting the nation's milk production and various allied activities within the dairy market.
Milk Production Volume
The annual milk production volume in Panama is approximately 280 million liters. This production volume substantially 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, highlighting growth in its processing capacities. Efforts are directed towards 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, which 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, with a focus 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 play key roles 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, issuing serious warnings about the potential threat to the entire dairy value chain.
The industry is also exploring options following a temporary suspension of raw milk collection after a major processing company decided to halt milk collection temporarily, causing a supply overload crisis and financial losses for producers. Panamanian dairy producers are facing a crisis due to the government's decision to halt import quotas for certain dairy products, leading to market competition with foreign goods that the national sector cannot withstand.
Modified: 2025/09/18