Nestlé’s announcement that it will stop buying C-grade milk from producers from Veraguas reflects the growing loss of market share for local milk to imported products.

Growth in imports of milk and its substitutes continues to take away market share from Panamanian milk producers. In the case of Nestlé Panama, the company reported that “imports of milk substitutes by third parties has caused a decrease in the consumption of certain lines of their dairy products. “For this reason, the company will stop buying 16 thousand liters of C milk per week from producers from Veraguas. 

Regarding the increase of imports of milk, substitutes and other dairy products in the country, “…From May 1, 2016 to March 27, 2017, 897 thousand kilograms of evaporated milk was imported from Peru, Costa Rica and the United States, according to figures from the Customs Authority.”

See also “Purchases and Sales of Dairy Products in Central America“

Euclides Diaz, from the National Cattlemen’s Association told Prensa.com that “… in the country, imported milk is being marketed as evaporated milk, when in fact it is a flavored and colored drink that simulates milk …   While in Panama evaporated milk is processed using fresh cow’s milk, the imported canned ones are made from a combination of several substances, and a minimum portion corresponds to cow’s milk. This makes it possible, according to Diaz, to lower production costs and lower consumer prices.”