New law shields national milk production, limits dairy imports in Panama

Panama has enacted a new law, Ley 539, that shields national fresh milk production and restricts dairy imports. The legislation declares fresh milk production an "essential activity for the food and nutritional security of the country." It will take effect in one year.

Producers of fresh milk will gain access to a modernization fund and a system of preferential state purchases. The law mandates that dairy importers must prove their contribution to bolstering national production. The legislation, approved in its third debate by the National Assembly on April 30, 2026, was sanctioned by President José Raúl Mulino and the Minister of Agricultural Development, Roberto José Linares Tribaldos.

The Ministry of Agricultural Development (Mida), in coordination with the Ministry of Commerce and Industries, will establish an Import Contingent Administration Mechanism for Milk and Dairy Products. This mechanism aims to protect national producers from imported supply fluctuations. Mida must publish a National Dairy Production Technical Report annually within the first 90 days of each year. This report will assess the country's production capacity, import volumes, and market behavior, serving as the mandatory basis for setting or modifying import quotas after public consultation with producer organizations.

The law also requires any individual or company importing milk or dairy products to demonstrate their involvement in strengthening the national sector. This can be achieved through purchasing local fresh milk or other methods defined by regulations. A National Registry of Fresh Milk Producers, managed by Mida, will identify all producers and be updated annually. This registry will inform promotion policies, subsidy beneficiaries, and import quota administration. Additionally, the National Preferential Supply System for Fresh Milk mandates that state purchasing programs for social purposes, including school breakfasts, hospitals, and community canteens, must prioritize national fresh milk when available.