Characterization of the Dairy Sector in El Salvador

Abstract

The dynamics of Salvadoran agribusiness have been changing according to production characteristics and the business environment, with the milk production and processing sector being one of the most affected by these changes. This sector is characterized by high production costs and volatile market prices. In addition, food safety policies and increasing market demands have created challenges that exceed the sector’s technical and investment capacities.

Since dairy products are a permanent component of the Salvadoran diet, one of the greatest concerns regarding the sector is the imminent decline in national supply to satisfy domestic demand. This situation could seriously affect food security in El Salvador because, even with imported products entering the market, there remains a risk of shortages.

The objective of studying the behavior of the milk value chain is to provide, based on an accurate diagnosis, background information and recommendations that contribute to overcoming the obstacles that hinder the economic growth of entrepreneurs in the sector. To achieve this, key stakeholders were consulted, and their opinions were collected to develop a SWOT analysis. This analysis later served as the basis for recommendations addressed to the Government, private companies, and higher education institutions, encouraging them to implement actions within their respective contexts to strengthen this economic activity.