Peru's Dairy Industry Overview

Peru stands out as a key player in the South American dairy sector, marked by substantial growth in milk and cheese production. The country achieves an annual milk production of around 2.2 billion liters, supported by approximately 2 million dairy cattle. This growth trajectory is driven by the demand for U.S. cheese and robust export activities.

Milk Processing and Cheese Production

Annually, Peru processes approximately 1.8 billion liters of milk and produces about 150,000 tons of cheese, catering to both domestic demand and export opportunities, particularly to the United States.

Milk Powder and Whey Production

The country produces 100,000 tons of milk powder each year. The whey production sector is expanding to meet the growing demand for diverse dairy products in both domestic and international markets.

Key Dairy Companies and Farms

Prominent companies like Gloria S.A., Laive S.A., and Nestlé Peru play vital roles in processing and distributing dairy products within Peru and abroad. Numerous small and medium-sized farms significantly contribute to Peru's diverse milk production landscape.

Exports and Imports

Peruvian dairy exports are on the rise, with about 80,000 tons of dairy products exported annually. Imports, primarily aimed at satisfying domestic demand for specialty cheeses, total approximately 60,000 tons per year.

Significant Market Events

There has been a surge in demand for U.S. cheese in South America by 60%, with Peru being a significant contributor. Peru has also become one of the largest markets for Chile's condensed milk exports, which have increased by 28.4%.

Innovation and Future Prospects

The Peruvian dairy industry is poised for continued growth, driven by investments in technology and sustainability. Notable collaborations, such as Gloria Group's partnership with Prolesur, highlight ongoing expansion efforts.

Regional Developments

In Puno, investments by the Regional Government aim to enhance dairy production capabilities, focusing on improving the quality and quantity of local raw milk production. The government supports the dairy industry through the AGROIDEAS program, co-financing 19 dairy processing plants to enhance the dairy value chain and promote industry formalization.

Peruvian Company Market Changes

Grupo Gloria, a Peruvian multinational, has exited the Uruguayan market by dismantling its industrial plant in Nueva Helvecia, Uruguay. Gloria has also announced its acquisition of Saputo's operations in Argentina, aiming to expand its presence in the Argentine dairy market.

Advancements in Goat Milk Production

The INIA has been authorized to produce high-quality goat semen in Peru, essential for boosting goat milk and meat production. This initiative will enable producers to enhance herd productivity efficiently.

Standardization of Andean Cheese

Peru's National Institute of Quality (Inacal) has approved a new technical standard for Andean cheese, ensuring its safety, quality, and presentation in both domestic and international markets.

Health Concerns in Infant Products

A study by the Ministry of Health of Peru, in collaboration with the National Institute of Health (INS) and UNICEF, found that 80% of the 64 infant products analyzed contain excessive amounts of sugar and saturated fats.

Product Safety Measures

Nestlé Perú has initiated a preventive recall of a specific batch of NAN infant formula due to a potential health risk linked to the possible presence of cereulide toxin, associated with Bacillus cereus. No incidents have been reported in the country.

Tariffs and Economic Measures

The Ministry of Economy and Finance in Peru has updated tariffs for imported milk powder, maize, rice, and sugar to stabilize imports and protect the local market. These measures are part of Peru's efforts to effectively manage agricultural imports.

Performance of Leche Gloria S.A.

Leche Gloria S.A. reported a 15.3% increase in net sales, driven by higher domestic sales of evaporated milk, dairy derivatives, and beverages, strengthening its position in the mass consumption market.

Peru's Constitutional Court Case

Peru's Constitutional Court is reviewing a case regarding milk production standards, which will impact production standards for the country's most consumed dairy product, evaporated milk. The court is also involved in a milk labeling dispute concerning the use of reconstituted powdered milk in evaporated milk products.

Support for Rural Families

The dairy sector in Peru supports over 350,000 rural families.

Upcoming Events

The Fourth Salón del Queso Peruano is set to take place at the Centro de Convenciones Lima in 2026. Organized by the Ministry of Agrarian Development and Irrigation in collaboration with the NGO CEDEPAS Norte, the event enjoys political backing from the regional governments of Arequipa and Cajamarca. The recent national dairy competition in Peru awarded the 'Perú Swiss' cheese from the Perla del Paraíso plant in La Libertad as the overall winner, showcasing the growth of emerging dairy sectors and the development of family farming across the nation.

Challenges Facing Dairy Farmers

Dairy farmers in Peru are expressing frustrations over the current state of the industry, citing insufficient government support and low profitability as critical issues. This situation is particularly dire in Arequipa, a major dairy region. The Peruvian government has extended the suspension of microbiological controls on raw milk until December 2031 as part of a broader effort to strengthen the milk production sector and promote formalization. Dairy farmers in Puno, southern Peru, are concerned about the impact of potential drought and the El Niño phenomenon on their production. High temperatures and reduced rainfall are already affecting milk quality and threatening future production.

Traditional Milk Cans from Gloria

The traditional milk can from Gloria has been a staple in Peruvian households for over eight decades. The durability and airtight nature of the cans protect the milk from external factors, ensuring the product arrives in optimal condition to families across Peru, regardless of their location.

Consumption Trends

Evaporated milk remains Peru’s most consumed dairy product, ahead of cheese. Its use is linked to long-established preservation and transport advantages, as well as its incorporation into everyday food and drink. Official information circulated by MIDAGRI and Inacal places the category ahead of cheese in household consumption. The product’s industrial history there extends back more than 80 years.

ProLácteos Support for Artisanal Cheese Production

Peru’s ProLácteos program involves 2,099 milk producers and 87 artisanal cheese plants. Led by the Ministry of Agrarian Development and Irrigation and implemented by Agromercado, it operates in five regions, including Cajamarca, La Libertad, Junín, Ayacucho, and Arequipa.

International Trade

Peru ranked behind Colombia among the destinations for Bolivia's dairy exports, being the second-largest destination for Bolivia’s dairy exports after Colombia. The CPTPP includes New Zealand and Australia, as well as Canada, Chile, Japan, Mexico, Peru, the United Kingdom, and Vietnam. Peru is part of the CPTPP, a trade agreement that could impact Costa Rican dairy producers. Peru's domestic milk production grew by 4.5% annually during each of the past two years. Agalep has asked Peru’s Constitutional Court to retain the regulation reserving the term “evaporated milk” for products made with fresh milk. The association linked the milk production growth rate to its description of the national production sector.

Queso Helado Recognition

Queso helado, a traditional dessert from Arequipa, Peru, has been included by TasteAtlas among the world’s notable frozen sweets. Queso helado is a traditional dessert associated with Arequipa, a Peruvian city known as the “White City”. The dessert has received international recognition after being included by TasteAtlas among the best frozen sweets in the world.

Focus on Dairy Genetics

Peru’s dairy producers are turning to genetics as higher temperatures threaten milk production. Peru’s dairy sector is focusing on dairy genetics in response to the effects of thermal stress on milk production. The reported concern is that animals exposed to temperatures above their usual range may produce less milk. Producers are seeking animals that are more efficient and better adapted to the climate.

Upcoming National Events

Peru will host a national fair for Holstein and Brown Swiss cattle. The 12th National Dairy Cattle Fair will take place in Mamacona, Lurín, showcasing livestock judging, dairy products, and a Peruvian Paso horse exhibition. The fair will focus on Holstein and Brown Swiss breeds, emphasizing progress in cattle genetics and productivity.