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Panama's Dairy Industry - Domestic Production, Importation, Consumption, Protective Tariffs, Subsidies, Labeling Issues, etc.


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MINSA denies Contamination of Chiriqui Milk

Fake news spread by 'unscrupulous' people has been floating around social media about products being contaminated with Bovine tuberculosis.

The Ministry of Health assures that there are no problems.

Minsa-contaminacion-Chiriqui-FotoIlustrativa-AFP_MEDIMA20170409_0220_31.jpg.34b4d0491cd3e0633d731147874a85ea.jpg

http://www.telemetro.com/nacionales/Minsa-desmiente-contaminacion-productos-Chiriqui_0_1015699020.html

 

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In a similar situation, Canada is under fire for protectionist actions which affect the importation of diafiltered milk from the U.S., and it's going to be a major point of discussion in upcoming NAFTA renegotiations.

"In Canada, we've always seen milk just as milk, rather than a series of ingredients that can be used to make other products."

Canada's dairy farmers say diafiltered milk from U.S. costs them millions

High-protein milk product from U.S. crosses border tariff-free, and food processors find it 'addictive'

Our wily neighbours to the south have figured out a clever way of not paying tariffs on a certain — let's say "controversial" — commodity, and Canadian dairy farmers say it's costing them hundreds of millions every year.

The product in question is called diafiltered milk.

Essentially, it's milk that's filtered, flushed with water, and then filtered a second time, with a few other steps along the way. The end product has a high concentration of protein, about 85 per cent, and very little of the fat and lactose that make up natural milk.

The Canadian government allows it to cross the border without a tariff, because if it were dried into a powder, it would have the same amount of protein as the kinds of protein powders allowed to pass through tariff-free under trade agreements. 

Diafiltered milk hasn't been around for long, but it's a very attractive alternative to food processors in Canada, who can buy it much more cheaply than milk produced by Canadian farmers.

'Addicted' to cheap U.S. milk

According to Sylvain Charlebois, dean of management and a professor in food distribution and policy at Dalhousie University in Nova Scotia, it's unclear just how big the market is and how much diafiltered milk is entering Canada. Global trade, he says, is likely negligible, though again those figures are difficult to nail down despite his efforts to calculate them.

Nonetheless, Canadian food processors seem keen to use it when they can. 

"It's a fairly new thing, it doesn't cost a fortune to transport from the U.S. to Canada, and, frankly, some food processors here have started to become addicted to it because it's so economical," he says. 

Diafiltered milk was one of the primary issues raised by dairy farmers from Ontario and Quebec who demonstrated on Parliament Hill this week. 

Dairy protest

One of the key demands of the dairy farmers who protested on Parliament Hill earlier this week was for the government to end the import of diafiltered milk. (Chris Wattie/Reuters)

Maurice Doyon, a professor of rural and agricultural economics at Laval University, estimates that Canadian dairy farmers lose about $200 million per year from food processors buying diafiltrated milk rather than Canadian product.

"You have to remember, for food processors, milk is just the raw material they use to extract the ingredients they want to make their products," he says. "And if that product happens to have a high protein component, then why spend the money on Canadian milk?"

Doyon says, however, that dairy farmers have a legitimate complaint when it comes to diafiltered milk, because, at the border, the protein content is calculated as if the product were dry, like a powder. But at the processing plant, it's still a liquid that is essentially milk. 

"It's a classic case of the right hand of the government doing one thing, and the left hand doing another. It's two different government agencies making decisions about the same product. So the farmers are saying, 'make it one or the other,'" he says.

"If it ended up being classified as milk, then no Canadian producers would continue to import and use it, it just wouldn't make sense."

Milk is more than 'just milk'

Some companies in the U.S. have already pounced on the marketing potential of the current protein craze. Coca-Cola began selling a product called Fairlife in 2015. It's advertised as milk with 50 per cent more protein, 50 per cent less sugar and lactose free. In reality, it's diafiltered milk, Doyon says.

Efforts are being made to stop the use of diafiltered milk in Canada, however. Earlier this month, the Agropur Dairy Co-operative, whose 39 member companies process more than 5.7 billion litres of milk each year, announced it would temporarily stop using diafiltered milk in its products. The trial is set to last for three months, until the end of July.

Agropur argues that should be enough time for the government to begin enforcing Canada's cheese standards, established in 2008, which require processors to use higher quality domestic dairy products. 

Charlebois says the government should also begin prioritizing upgrading Canada's food processing sector to be more competitive on a global scale. The battle over supply management has shifted the focus in the dairy sector away from innovation, he says, leaving it highly underdeveloped.

"In Canada, we've always seen milk just as milk, rather than a series of ingredients that can be used to make other products. It's a pretty unsophisticated system, and now it's coming back to haunt our dairy farmers.

http://www.cbc.ca/news/business/milk-dairy-diafiltered-1.3614942

 

Edited by Keith Woolford
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Imported Milk Gains Market Share in Panama

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.

Wednesday, May 17, 2017

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."

http://www.centralamericadata.com/en/article/main/Imported_Milk_Gains_Market_Share_in_Panama

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Panama Suspends Imports of Peruvian Milk

Arguing that the labeling does not really reflect the content of the product, the Panamanian government has suspended the entry of evaporated milk from the Pura Vida brand, from Grupo Gloria from Peru.

Friday, May 26, 2017

The decision was taken by the Panamanian Food Authority (Aupsa) after the National Association of Cattlemen reported that the market was trading imported milk that was sold as evaporated milk "... when in fact it is a flavored and colored drink which imitates milk."

Read also: "Central American Trade in Milk and Dairy Up 4%"

"... Resolution 015-AG-2017 states that Pura Vida evaporated milk contains in its labeling illustrations and statements which may lead to misconceptions about the nature of the product, in such a way as to induce the consumer to assume that it is a food product which is a totally dairy product, which contravenes the standard."

Prensa.com reports that "...The label specifies that its ingredients contain soy lecithin, stabilizers, vitamins A, C and D, a minimum portion of partially skim milk, soy milk and milk essence."

See resolution issued by the Aupsa. (In Spanish)

 

http://www.centralamericadata.com/en/article/main/Panama_Suspends_Imports_of_Peruvian_Milk

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Milk producers want imports cut

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MILK  producers  in the Azuero  region have called on  President , Juan Carlos Valerla, to reduce imports  of the product  or they will disappear in the midst of an economic meltdown

The request comes  after  hearing that they will get 35 cents a liter for milk from July 7.

Paublino Vásquez, a milk producer in the province of Los Santos, s aid that Varela has to lower imports, renegotiate treaties and put  more money into  the agricultural sector.

He said that the milk sector is the one that moves the economy of the Azuero region and the state  has to provide support, otherwise it’s not worth having a dialogue table and it will become a socio-economic problem.

Vásquez, said that 34,000  tonnes of dairy products including milk derivatives like dried milk and  cheese  are being imported

 

http://www.newsroompanama.com/news/panama/milk-producers-want-imports-cut

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Panama to Increase Import Tariffs for Dairy Products

The Cabinet Council approved a decree that seeks to increase import tariffs of dairy products, such as substitute milk and mozzarella cheese, from 15% to 30%.

Wednesday, August 9, 2017

From a statement issued by the Presidency of Panama: 

The Cabinet Council approved a decree that seeks to increase import tariffs on dairy products, such as substitute milk and mozzarella cheese, from 15% to 30%. 

This initiative corrects a distortion that originated in 2012 when there was a drastic drop in import tariffs on these products. 

The Minister of Agricultural Development, Eduardo Enrique Carles, stressed that this measure is necessary, since in 2012 a direct reduction to 15% was made on tariffs for products such as shredded or powdered mozzarella cheese, substitute milk and other cheeses.

In addition, this contributes to improving conditions of the productive sectors in the country, which made it necessary to modify the National Import Tariff, in order to have a positive impact on the competitiveness of these sectors.

 

http://www.centralamericadata.com/en/article/main/Panama_to_Increase_Import_Tariffs_for_Dairy_Products

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Barriers to Dairy Products

In Panama, the agribusiness sector and the government agreed to review all legal details to assess an increase from 15% to 30% in the import tariff for mozzarella cheeses.

Friday, November 16, 2018

This week, the country's dairy agribusiness sector met with President Juan Carlos Varela and representatives of the Ministries of Agricultural Development and Trade and Industries.

Regarding the most important agreements made, Panamaamerica.com.pa notes that "... the Ministry of Commerce Industries will review all legal issues for the implementation of a 15% to 30% increase in tariff on mozzarella cheese."

You may be interested "Dairy Trade Figures in Central America"

In addition to the increase in Mozzarella cheese tariffs, the session also agreed on a plan for direct technical assistance implemented to some 4,500 producers, activate a major national campaign for the consumption of milk and dairy products, implement in the next 30 days strategies with the agro-exporting sub-dairy products, mainly cheeses. And finally, funds were secured for the final part of the 10 cents compensation payment to producers of grade C milk.

Regarding trade in milk and dairy products among Central American countries, between the first quarter of 2017 and the same period in 2018, there was a slight decrease of 1%, dropping from $77.3 million to $76.5 million.

 

https://www.centralamericadata.com/en/article/main/Barriers_to_Dairy_Products

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Food: $17 Million for Producer Subsidy

The National Assembly of Panama approved funds to pay during the second half of the year, incentives to producers of rice, corn and milk grade C.

Friday, November 29, 2019

The Budget Commission of the National Assembly approved in favor of the Ministry of Agricultural Development (MIDA) $17,371,543, to pay incentives to producers, needs an official report.

You may be interested in "Crops in Central America: Main Figures in 2018"

The statement reviews that "... The minister of MIDA, Augusto Valderrama, explained that will be supported with non-refundable resources to rice producers, who sell their crop in shell, wet and dirty to the national industry, for the 2019-2020 cycle. He also indicated that they will support producers of grade C milk, which make sales to plants and dairy industries, corresponding to what corresponds to the last half of this year.

Valderrama said that these non-reimbursable funds will consolidate the national production of grains and milk, in addition to ensuring food security of the Panamanian population, through the strengthening of agricultural and dairy activity, because together they represent about 50% of the caloric contribution of the basic food basket.
"

 

https://www.centralamericadata.com/en/article/main/Food_17_Million_for_Producer_Subsidy

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Dairy: Regional Trade Still Rising

From January to September 2019, trade in milk and dairy products among the countries of the region reached $245 million, 2% more than in the same period in 2018.

Wednesday, February 5, 2020

Figures from the Trade Intelligence Unit at CentralAmericaData:

image.png

Nicaragua, Main Exporter 
During the first nine months of 2019, the main exporter of milk and dairy products to Central American countries continued to be Nicaragua with $104 million, followed by Costa Rica with $94 million, Honduras with $21 million, El Salvador with $20 million, Panama with $5 million and Guatemala with $1 million.

Intra-regional Trade Behavior
Between January and September 2018 and the same period in 2019, milk and dairy product trade between Central American countries recorded a slight increase of 2%, rising from $240 million to $245 million.

In the case of traded volume, a 5% increase was reported for the periods in question, from 122,520 tons to 128,318 tons.

Main Intra-Regional Buyer
From January to September, El Salvador was the main buyer of the other Central American countries, importing $106 million, of which $78 million went to Nicaragua, $14 million to Costa Rica and another $13 million to Honduras.

Note: For this report, prepared by CentralAmericaData, data from SIECA were used.

 

https://www.centralamericadata.com/en/article/main/Dairy_Regional_Trade_Still_Rising

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Panamá negocia con Estados Unidos importación de ganado lechero

Aet Elisa Tejera C.
15 ago 2020 - 12:00 AM

https://www.prensa.com/impresa/economia/panama-negocia-con-eu-importacion-de-ganado-lechero/

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Dairy: Regional Trade up 19%

From January to June 2020, trade in milk and dairy products between Central American countries totaled $183 million, 19% more than what was recorded in the same period of 2019.

Tuesday, February 2, 2021

Figures from the Trade Intelligence Unit of CentralAmericaData:

image.png
Nicaragua, Main Exporter
During the first six months of 2020 the main exporter of milk and dairy products to Central American countries continued to be Nicaragua, with $77 million, followed by Costa Rica, with $71 million, El Salvador, with $17 million, Honduras, with $13 million, Panama with $4 million and Guatemala, with $500 thousand.

Intraregional Trade Behavior
Between January and June 2019 and the same period in 2020, trade in milk and dairy products between Central American countries registered a 19% increase, rising from $154 million to $183 million.

In the case of volume traded, a 13% increase was reported for the periods in question, from 80,592 tons to 90,957 tons.

Main Intra-Regional Buyer
From January to June 2020, El Salvador was the main buyer of the other Central American countries, importing $82 million, of which $58 million was purchased from Nicaragua, $15 million from Costa Rica and another $8 million from Honduras.

Guatemala was the second largest importer, buying $61 million in milk and dairy products from the other Central American countries, of which $29 million was imported from Costa Rica, $14 million from Nicaragua, $13 million from El Salvador and $5 million from Honduras.

Note: For this report, prepared by CentralAmericaData, SIECA data were used.

 

https://www.centralamericadata.com/en/article/main/Dairy_Regional_Trade_up_19

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Dairy: Regional Trade Up 7% in 2020

During last year, trade in milk and dairy products between Central American countries totaled $355 million, 7% more than what was recorded in 2019.

Thursday, June 17, 2021

Figures from the Trade Intelligence Unit of CentralAmericaData.


image.png
Nicaragua, Main Exporter
During 2020, the main exporter of milk and dairy products to Central American countries continued to be Nicaragua, with $158 million, followed by Costa Rica, with $120 million, El Salvador, with $40 million, Honduras, with $27 million, Panama with $10 million and Guatemala, with $900 thousand.

Intraregional Trade Behavior
Between 2019 and 2020, trade in milk and dairy products between Central American countries recorded a 7% increase, rising from $332 million to $355 million.

In the case of volume traded, a 1% increase was reported for the periods in question, from 172,103 tons to 174,171 tons.

Main Intraregional Buyer
Last year, El Salvador was the main buyer of the other Central American countries, importing $166 million, of which $124 million was purchased from Nicaragua, $23 million from Costa Rica and another $18 million from Honduras.

Guatemala was the second largest importer, buying $123 million in milk and dairy products from the other Central American countries, of which $58 million was imported from Costa Rica, $31 million from El Salvador, $25 million from Nicaragua and $9 million from Honduras.

 

https://www.centralamericadata.com/en/article/main/Dairy_Regional_Trade_Up_7_in_2020

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Dairy company workers win 18% raise over 4 years

strikej.jpeg

Posted 02/07/2021

Workers and the Estrella Azul company reached an agreement, which allows the lifting of the week-long strike decreed by the Workers' Union of the Blue Star Products Companies (Siteea).

Siteea reached an agreement with the representatives of the company, in which the salary adjustment of 4.5% per year is established and reaches 18% in four years. In addition, it was reported that the company agreed to recognize the salary adjustment retroactively from March 2021 and deliver an additional contribution of $80 as compensation for the strike days.

"Even when the economic situation of the company remains in a difficult position, Estrella Azul will make monetary efforts for the benefit of the entire national economic ecosystem," said the company in a statement announcing the restart of operations.

The Minister of Labor and Labor Development, Doris Zapata said that, despite the fact that arbitration had been decreed in this conflict, the dialogue table continued to establish agreements. The talks between the parties ended in the morning hours of Friday.

Subsequently, inspection personnel from the Ministry of Labor and Labor Development went to the company to verify the opening of activities, which occurred "without any novelty."

The parties are already "notified", which will allow progress in the work of the plant in Panama City and in the rest of the provinces, the minister said on TVN Noticias .

Estrella Azul, owned by Panama Dairy Ventures Ltd, a Central American business group, has 1,350 direct workers and generates 6,750 indirect jobs.

 

https://www.newsroompanama.com/business/dairy-company-workers-win-18-raise-over-4-years

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