Overview of Peru's Dairy Industry

Peru has established itself as a significant participant in the South American dairy market, experiencing notable expansion in milk and cheese production. This growth is largely fueled by the increasing demand for U.S. cheese and robust export activities.

Dairy Cattle and Milk Production

Peru's dairy sector is supported by approximately 2 million dairy cattle, which produce around 2.2 billion liters of milk annually. This growing herd size highlights the sector's potential for continued development.

Milk Processing and Cheese Production

Annually, about 1.8 billion liters of milk are processed in Peru. Cheese production is on the rise, with the country producing approximately 150,000 tons each year. The growth is driven by both domestic demand and export opportunities, particularly to the United States.

Milk Powder and Whey Production

The production of milk powder in Peru reaches 100,000 tons annually, supported by a burgeoning whey production sector that serves both domestic and international markets.

Key Dairy Companies and Farms

Leading companies such as Gloria S.A., Laive S.A., and Nestlé Peru play crucial roles in processing and distributing dairy products within Peru and abroad. Numerous small and medium-sized farms also contribute to the country's diverse milk production landscape.

Exports and Imports

Peru's dairy exports are increasing, with around 80,000 tons of dairy products exported annually. Imports, primarily to meet the domestic demand for specialty cheeses, amount to 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 driven by the expanding middle class and changing dietary preferences, facilitated by favorable trade agreements. Additionally, condensed milk exports from Chile have also risen by 28.4%, with Peru being one of the largest markets.

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, aimed at improving the quality and quantity of local raw milk production. The Peruvian government supports 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.

Health Concerns in Infant Products

A study conducted by the Ministry of Health of Peru, in collaboration with the National Institute of Health (INS) and UNICEF, analyzed 64 infant products available in marketplaces across Lima. It found that 80 percent of these products contain excessive amounts of sugar and saturated fats.

Modified: 2025/09/18


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