Panama's Dairy Industry: An Analytical Overview

Panama's dairy market is a critical sector with significant influence in both regional and international arenas. The industry is evolving with advancements in production capacity, import-export dynamics, and strategic enhancements in processing technologies.

Dairy Cattle Population

Panama maintains a substantial dairy cattle population, estimated at approximately 400,000 heads. This cattle population forms the foundation for the nation's milk production and supports various allied activities in the dairy market.

Milk Production Volume

The annual milk production volume in Panama is approximately 280 million liters. This volume significantly supports the 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 a growth trajectory in its processing capacities. The focus is on enhancing the processed dairy product portfolio to add more value and cater to diverse market needs.

Cheese Production Volume

The cheese production in Panama is estimated at around 10,000 metric tons annually. This production level not only satisfies local consumption but also provides opportunities for export, especially to neighboring countries.

Milk Powder and Whey Production

Panama's production of milk powder and whey remains relatively limited, focusing more on fresh dairy products. The production volume stands at approximately 1,500 metric tons per year.

Key Dairy Enterprises

Prominent dairy processing plants in Panama include Estrella Azul and Productos Nevada. These enterprises are key players in processing and distributing dairy products nationwide. On the farming front, notable enterprises include Hacienda La Esmeralda and Finca Santa Teresa, recognized for their superior milk quality, serving both domestic and international markets.

Export and Import of Dairy Products

Panama's dairy exports amount to around USD 20 million annually, targeting primarily Central American markets. The most notable development in recent times has been a 39% increase in cheese imports from the United States, highlighting a consumer trend towards diverse and high-quality cheese products.

Significant Events in the Dairy Industry

Significant changes reflect Panama's strategic approach to opening its market for a wider range of international dairy products, notably evident with 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.

In recent events, Panama is rallying to reinforce its dairy market positions after a WTO ruling impacting its trade relations with Costa Rica.

Source: Panama Dairy Industry Overview Report - 2023

Modified: 2025/02/04

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