Chile dairy sector fuelled by high demand, low supply - GAIN
Whole milk powder production projected to increase 3.5% in 2024
1 November 2023
1 minute read
By: This year, milk prices in Chile have increased due in part to low milk supply and high demand for dairy, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
In Chile, most processing plants produce fluid milk and cheese, very few produce yoghurt, whey, condensed milk, or other value-added dairy products. Only seven processing plants produce milk powder.
In 2024, the USDA post in Chile projects whole milk powder production will increase by 3.5% and reach 59,000 metric tons (MT). Whole milk powder exports will total 9,000 MT and imports will reach 4,000 MT to fulfill domestic demand.
In 2024, skim milk powder production is projected at 18,000 MT, a 5.9% increase over 2023. Post estimates Chilean imports and exports of skim milk powder to remain flat at 5,000 MT and 2,000 MT, respectively.
According to the report, Chile is considering the adoption of EU-style geographic indications, which will impact US competitiveness in and access to the Chilean market.
