Panama milk production climbs to cut imports

Panama’s milk producers, unlike other agricultural producers, are having an outstanding year and are increasing their production to reduce dependence on imports.
Over 160 million liters of milk are produced in Panama annually, but consumption is nearly double that at 300 million liters. But this year the National Association of Farmers said that producers are on course for record production.
So far this year, milk production is up 5.4 million liters compared to the same period last year, an increase of 11.7 percent.
But producers are concerned that the price per liter has fallen from 36 cents a liter to 30 cents a liter.
Producers say the price drop could harm many of the farmers who have invested money in expanding their operations.
To help the farmers, the government plans on introducing measures that would protect the industry from cheaper imports. The plan involves working with the World Trade Organization to allow Panama to increase the tariff on certain categories of milk imports, namely those used by large companies. But companies that agree to buy a certain percentage of locally-produced milk would then be allowed to import milk at a cheaper rate.
The new formula for milk imports will be the same one used for corn and grain imports.