Dairy Prices Surge in Colombia, Impacting Consumers

According to the January 2025 Consumer Price Index data released by DANE, there has been a significant increase in the prices of milk, cheese, and other dairy products in Colombia. Despite this surge, payments to dairy producers have remained low.

Óscar Cubillos, an expert in cattle economy, noted that the initial months of 2025 saw steep increases with liquid milk prices rising by 0.82%, cheese by 1.37%, and dairy derivatives by 2%. The price of butter also surged by 2.17% in January alone.

The price hikes are causing a direct impact on consumers' budgets as dairy products are daily staples in most households. Cubillos stressed that such price changes could further deter consumption, exacerbating a crisis for producers.

The compensation to milk producers has also seen a downturn, with the price per liter dropping from $2,300 two years ago to $1,925 by November 2024. This discrepancy between consumer prices and producer payments fuels uncertainty in the industry.

Cubillos called for government intervention to ensure industry stability by encouraging dairy consumption through governmental programs and revisiting pricing strategies. He emphasized the importance of including dairy products in school meals and community programs.

Observing market trends in February might offer insights into whether the price increase was a temporary adjustment or a continuing trend fueled by economic factors like minimum wage increases.