Costa Rican Dairy Expands into Panama; Possible Boost to DDGS Sales

By Kurt Shultz, U.S. Grains Council Regional Director for the Americas

In January 2013, Dos Pinos, the largest dairy company in Costa Rica, announced it was purchasing Nevada, a producer of milk and fruit juices in Panama. Nevada was previously owned by Refrescos Nacionales, a subsidiary of Panama’s national brewery, which belongs to the multinational SABMiller. The new owner, Dos Pinos, has been a key partner with the U.S. Grains Council in promoting U.S. distiller’s dried grains with solubles in Costa Rica. This expansion could increase the use of U.S. DDGS within the Panamanian dairy sector.

Nevada has the capacity to process 100,000 liters of milk per day in addition to fruit juices. Dos Pinos described the acquisition as a strategic part of its foreign expansion plans. Jorge Pattoni, Dos Pinos general manager, stated “Nevada controls approximately 70 percent of the Panamanian milk market.” Dos Pinos has 600 different lines of products and exports of around $84 million annually. The company currently exports to Central America, the United States, Trinidad and Tobago, Dominican Republic, Cuba, Aruba, Venezuela, and more.

The transaction is pending approval from Panama’s Consumer Protection and Competition Authority. If approved, it will likely improve the quality of Panama’s milk industry as well as potentially expand usage of U.S. DDGS.