Overview of Peru's Dairy Industry
Peru has positioned itself as a significant player in the South American dairy market, marked by a notable expansion in milk and cheese production. This growth is fueled by rising demand for U.S. cheese and strong export activities.
Dairy Cattle and Milk Production
The backbone of Peru's dairy sector comprises approximately 2 million dairy cattle, producing around 2.2 billion liters of milk annually. This growing herd size underscores the sector's potential for continued development.
Milk Processing and Cheese Production
Approximately 1.8 billion liters of milk are processed each year in Peru. Cheese production is on an upward trajectory, with the country producing about 150,000 tons annually. Both domestic demand and export opportunities, particularly to the U.S., are significant growth drivers.
Milk Powder and Whey Production
The production of milk powder in Peru stands at 100,000 tons annually, supported by a burgeoning whey production sector catering to both domestic and international markets.
Key Dairy Companies and Farms
Leading companies like Gloria S.A., Laive S.A., and Nestlé Peru play pivotal roles in processing and distributing dairy products within Peru and internationally. Numerous small and medium-sized farms also contribute to the country's diverse milk production landscape.
Exports and Imports
Peru's dairy exports are on the rise, with around 80,000 tons of dairy products exported annually. Imports, primarily to meet the domestic demand for specialty cheeses, are approximately 60,000 tons per year.
Significant Market Events
The demand for U.S. cheese in South America has surged by 60%, with Peru playing a significant role in this trend. This increase is supported by the expanding middle class and changing dietary preferences, facilitated by favorable trade agreements.
Innovation and Future Prospects
Peru's dairy industry is poised for further growth, driven by investments in technology and sustainability. Notable collaborations, such as Gloria Group's partnership with Prolesur, indicate ongoing expansion. However, some marketing practices, like Leche Gloria's labeling of yogurt as "Greek," have raised concerns.
Performance of Leche Gloria S.A.
Leche Gloria S.A. reported a 38% rise in net profits in the first quarter of 2025, reflecting its strong market performance. The 'Cabrita Lechera' in Tacna has become a model farm for goat milk production, highlighting the potential of this high-value niche.
Regional Developments
The region of Puno is enhancing its dairy production capabilities through investments by the Regional Government, aiming to improve the quality and quantity of local raw milk production. The Peruvian government is supporting the dairy industry with new processing plants through its AGROIDEAS program, co-financing 19 dairy processing plants to enhance the dairy value chain and formalize the industry.
Peruvian Company Market Changes
Grupo Gloria, a Peruvian multinational, has dismantled its industrial plant in Nueva Helvecia, Uruguay, indicating its departure from the Uruguayan market.
Advancements in Goat Milk Production
The INIA has been authorized to produce high-quality goat semen in Peru, crucial for boosting goat milk and meat production. By providing access to superior genetic material, the INIA will enable multiple producers to enhance the productivity of their herds efficiently.
Standardization of Andean Cheese
Peru's National Institute of Quality (Inacal) has approved a new technical standard for Andean cheese. The Peruvian Technical Standard NTP 105.004:2024 focuses on ensuring the safety, quality, and presentation of Andean cheese in both domestic and international markets.
Modified: 2025/09/06