El Salvador's Dairy Industry

El Salvador is a key player in the dairy market within the Central American region. The country's dairy market is characterized by robust milk production, significant processing capabilities, and strategic trade relations, notably under the Central America-Dominican Republic Free Trade Agreement (CAFTA). This agreement aims to reduce tariffs and foster trade between the U.S. and six Central American countries, including El Salvador.

Dairy Cattle and Milk Production

Number of Dairy Cattle: Approximately 550,000 heads (estimate based on regional data trends)

Milk Production Volume: Approximately 550 million liters per year

Milk Processing and Dairy Products

Milk Processing Volume: Approximately 120 million liters per year

Cheese Production Volume: 30,000 metric tons/year

Milk Powder and Whey Production: Limited domestic production, with a reliance on imports for milk powder

Dairy Plants and Farms

Key dairy plants in El Salvador include "La Pradera" and "Salvapan", renowned for their cheese and yogurt production. Additionally, numerous small-scale farms contribute significantly to the domestic milk supply.

Trade: Exports and Imports

Export of Dairy Products: Approximately $20 million/year, predominantly cheese and powdered milk products, exported to neighboring countries.

Import of Dairy Products: Approximately $50 million/year, with substantial imports of milk powder and butter. Notably, El Salvador's imports of U.S. cheese have increased by 105%.

Significant Events in the Dairy Industry

Recent years have witnessed efforts to modernize El Salvador's dairy production facilities, emphasizing the improvement of quality standards and expansion of production capacity. The CAFTA agreement enhances access to the U.S. market, influencing the competitive environment for local producers and driving investments in technology and infrastructure.

Sources: El Salvador Dairy Industry Association, CAFTA Agreement Publications

Modified: 2025/02/03

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