Characterization of the dairy item of El Salvador

Abstract

The dynamics of Salvadoran agribusiness has been changing according to the characteristics of production and business climate, one of the sectors most impacted by changes in the production and processing of milk.
This sector is characterized by high production costs and volatile market prices.
In addition, the creation of food safety policies and market demands has caused the sector to face difficulties that exceed its technical and investment capabilities.
Since dairy products are permanent components of the Salvadoran diet, one of the greatest concerns about the situation in the sector is the imminent decrease in the national supply to meet domestic demand.
This situation would have a severe impact on food security in El Salvador, because even if there is a flow of imported products, there is a risk of shortages in the market.
The objective of studying the behavior of the milk value chain is to offer, on the basis of an accurat  diagnosis, background and recommendations that contribute to correcting the obstacles that impede the economic growth of entrepreneurs in the sector.
To this end, the sector’s stakeholders were consulted, collecting their opinions for the construction of a SWOT analysis that, subsequently, served as the basis for the creation of recommendations addressed to the Government, private companies and higher education institutions, so that its context generate actions to enhance this economic activity.