Innovation and Technological Transfer: Key Drivers for Dairy Growth in Latin America

The Food and Agriculture Organization (FAO) is advocating for cutting-edge innovation and a strategic transfer of technology as means to enhance productivity and competitiveness within the Latin American dairy sector. During the Ecuador Dairy Forum 2025, Erika Zárate fr om FAO highlighted the dual pillars necessary for substantial industry advancement: continuous innovation and technological transfer through public-private partnerships designed to modernize dairy farms and processing plants.

Despite a global doubling of dairy production over the last 30 years, reaching nearly 1 billion tons, productivity per animal remains an issue, and the sector’s growth primarily results from an increased number of livestock. Merely 7% of production contributes to international trade, which is predominantly dominated by the European Union and the United States, leaving untapped regional markets in Latin America.

Latin America, except Brazil, is not prominently competitive in exports, thus, focus should be on internal markets, especially in Central America, wh ere local production falls short. The region also reports lower than the global average dairy consumption of 14 kg per person annually, necessitating a pivot towards dietary products that are healthy, functional, and cater to specific demographics, moving beyond traditional liquid milk.

Furthermore, as per Miguel De la Torre (Kantar Ecuador) and Deputy Minister Andrés Robalino, boosting competitiveness demands cost reductions, professional productivity measures, and regulatory standardization. Ecuador, for instance, has grappled with the region's highest production costs due to inefficient management practices for decades. The path forward includes effective governance, formalization, and strategic alliances.