Ecuador's Dairy Industry Sets Sights on Global Markets Amidst Low Local Consumption
Ecuador's dairy industry is navigating challenges as local consumption remains sluggish, prompting a shift towards international markets. The current per capita consumption of milk in Ecuador stands at 114 liters annually, significantly lower than the World Health Organization's suggested intake of 180 liters. This puts Ecuador below neighboring countries such as Colombia, which consumes 152 liters, Argentina at 189.7 liters, and Uruguay leading with 232 liters.
The industry is bracing against not only low consumption rates but also market challenges such as insecurity. To sustain growth, efforts are being beefed up to penetrate global markets. "Within our guild, we have industries focused on internationalization," mentioned Verónica Chávez, Executive Director of the Dairy Industry Center (CIL). In 2024, Chinese entrepreneurs visited Ecuador with an interest in importing dairy products.
Despite these challenges, the country's dairy sector achieved sales of $400.9 million in 2024, marking an increase of 5.39% from 2023. However, factors such as adverse weather, power outages, and security issues led to a 1.22% decrease in milk production.
The nation is eyeing new foreign markets, including El Salvador and Peru, while maintaining permits to export to Argentina, Colombia, and Chile amid competitive pricing issues. Ecuador's raw milk costs higher compared to regional players, challenging its competitiveness abroad. However, quality remains a strength, with Ecuadorian brands like Toni successfully exporting to niche markets in the United States.
The industry's future hinges on resolving pricing constraints and reducing the informal market's grip, which currently accounts for 48% of milk sales within the country. Prospects of entering the European market remain distant due to stringent traceability and formalization requirements.
Chávez also noted the rise of "white brands" taking a growing share of the local market, highlighting ongoing challenges within this sector.
