Shortage of Dairy Products in Panama
Panama is experiencing an incipient shortage of Dos Pinos dairy products, due to the fact that an inspection procedure to be carried out by Panamanian health authorities has been pending since March, postponed due to the sanitary closure of the borders. The International News System of Panama (SNIP) published on August 5 about the difficulty of obtaining lactose-free milk and similar presentations in that country.
The Nevada company, and its counterpart the Cooperativa Dos Pinos de Costa Rica, would have informed several local supermarket chains that due to the lack of inspection at their plant on Costa Rican soil they had difficulties importing the product.
The Panamanian newspaper La Prensa stated that 26 Costa Rican plants were disabled, mostly meat and dairy. In addition, he assured that the commercial relationship goes through a moment of tension.
“Among Costa Rican companies there is talk of non-tariff barriers in Panama to protect their producers. The Panamanian agribusiness sector asks the Government to renegotiate the trade agreement with Costa Rica because the neighboring country uses ‘any excuse’ to prohibit the entry of Panamanian products, such as beef, pork, and chicken, while Panama opened their doors for the entry of their products, ‘said the newspaper on its website.
Dos Pinos is among the top 20 dairy brands most chosen by Panamanian consumers, according to data from Kantar, Worldpanel division.
According to data from Dos Pinos, Panama produces around 300 million liters of milk per year but the market is 33% larger than local production. Minister of Agricultural Development of Panama, Augusto Valderrama stats that the current dairy production in the country barely supplies 50% of the demand. The Union of Panama (SIP) reported that imports from Costa Rica reached $ 471.9 million in 2019.