Panama Sounding Alarm Over Dairy Imports from US

Panama's dairy industry has issued a serious warning about the potential impact of massive dairy product imports from the United States. The National Association of Milk Processors (Anaprole), through its president Natzare Bermúdez, expressed deep concern about the imminent "displacement of national production" by imported finished products. This situation threatens the entire dairy value chain in the country, posing a risk to the economic and operational sustainability of local producers.

The alarm intensifies as Panama is set to allow free imports of products like fluid milk, butter, and yogurt in 2026. Although production and milk receipt in Panama increased by an average of 6.1% in 2024, there is a fear that these volumes might significantly drop due to competition from imported products in the coming years. This presents a "year of challenges" for the national industry, which needs to enhance its resilience and competitiveness.

Anaprole and other dairy sector stakeholders in Panama are making an urgent appeal to the population to promote local dairy production consumption. They argue that supporting local products not only is a matter of preference but a vital strategy for the country's economy as it creates jobs and value across the chain.

Historically, Panama's dairy industry faced challenges, including a consistent decline in milk production. From approximately 215 million liters in 2015, production has dwindled to around 180 million liters today. This decrease is attributed to various factors such as imports and local challenges. The industry calls for a review of import policies to ensure fair competition and aims to sustain employment in the sector, highlighting a broader concern across Latin America's agroindustry.