Dominican Republic: Opportunities and Challenges in the Dominican Dairy Sector

Commodities

Topics

While the Dominican Republic’s (DR) dairy sector is a very important source of local employment, it is not able to supply the full range of dairy products consumed domestically, especially in the growing hotel, restaurant and industrial (HRI) sector. In 2017, U.S. dairy exports to the DR totaled $78 million (a 27 percent market share), including cheeses and non-fat dry milk (NFDM). In 2018, U.S. dairy exports increased 11 percent ($87 million) from 2017. While the United States continues to be the dominant supplier of NFDM to the DR, it is facing increasing competition from the European Union (EU) under its Economic Partnership Agreement with CARIFORUM. The DR remains a promising sector for U.S. dairy products, including cheese, yogurt and fluid milk, given its rapidly growing economy and HRI sector. However, importers regularly face a high level of uncertainty due to stringent regulations, which are reportedly causing retailers to stop importing certain lines of dairy products. 

Dominican Republic: Opportunities and Challenges in the Dominican Dairy Sector