Peru's Dairy Market Overview

Peru has experienced substantial expansion in its dairy sector, becoming an influential player in the South American dairy market. This growth is driven by increasing milk and cheese production activities and a significant rise in demand for U.S. cheese.

Dairy Cattle and Production

Peru's dairy industry is supported by approximately 2 million dairy cattle. This herd size has been expanding steadily, helping Peru produce about 2.2 billion liters of milk annually.

Milk Processing and Cheese Production

The volume of milk processed in Peru is around 1.8 billion liters per year. Concurrently, cheese production has been ascending, targeting growing domestic demand and export opportunities, particularly the U.S. Currently, Peru produces approximately 150,000 tons of cheese each year.

Milk Powder and Whey Production

Peru produces about 100,000 tons of milk powder, with a burgeoning whey production industry catering to both domestic and international markets.

Dairy Companies and Farms

Key enterprises shaping the Peruvian dairy market include:

• Gloria S.A.
• Laive S.A.
• Nestlé Peru

These companies are pivotal in processing and distributing dairy products within Peru and internationally. Numerous small and medium-sized dairy farms also play a significant role in the country's milk production.

Exports and Imports

Peru's dairy exports have been on the rise, with cheese exports notably increasing, especially to other South American countries and the U.S. Annually, Peru exports around 80,000 tons of dairy products while importing about 60,000 tons to meet domestic demand for specialty cheeses.

Significant Events in the Dairy Industry

The market has seen a notable increase in U.S. cheese exports to South America, with a 60% surge in demand, predominantly from Peru. This trend aligns with Peru's expanding middle class and evolving dietary preferences, supported by advantageous trade agreements.

Innovation and Future Growth

Peru's dairy sector is experiencing growth driven by investments in technology and sustainability. The agricultural strategy includes an increase in exports of organic products such as tomatoes, avocados, and bell peppers, showcasing a diversified approach. The Gloria Group's international collaborations, like with Prolesur, highlight the market's ongoing expansion. However, concerns have arisen over Leche Gloria's marketing practices, such as branding its yogurt as 'Greek' without being manufactured in Greece.

Modified: 2025/03/10

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