The production of cow milk increased in Peru at a CAGR of 16.2% during the period from 2007-2009. Peru is the 5th largest contributor of cow milk production in Latin America with the milk production of 1,878 thousand tonnes and market share of 3.1% in 2009. By 2015, the market share is expected to increase further and will reach 4.1% and 2,990 thousand tonnes in volume terms.
Although, the country has witnessed an increase in the milk production along with the investments in this sector in the last few years, the country is still a net importer of milk and dairy products.
The primary reasons for an increase in production are better communications between the dairy processors and distant upland producers, increased number of dairy farms and an increase in the average yield in the cow milk production.
The milk prices have increased in greater proportion than feed prices in Peru which has resulted in a positive farm’s earning. In the future, it is possible to reduce the feed prices further if the infrastructure especially the road network is improved.
In 2009, Arequipa was the biggest region in terms of milk production accounting for 22% of the milk production followed by Cajamarca and Lima with 18% and 17% respectively. Other regions such as La Liberated and Amazonas accounted for 6% and 5% of the milk production.
