Chile's Dairy Market Dynamics: Price Surge, Production Projections, and Potential Regulatory Shifts
Source: The DairyNews
The latest report from the USDA Global Agricultural Information Network (GAIN) sheds light on the factors contributing to a notable increase in milk prices in Chile this year. The surge is attributed to a combination of low milk supply and heightened demand for dairy products in the region.
Chile's dairy processing landscape primarily focuses on fluid milk and cheese, with limited production of yogurt, whey, condensed milk, and other value-added dairy items. Notably, only seven processing plants in the country are engaged in milk powder production.
Looking ahead to 2024, the USDA post in Chile anticipates a 3.5% increase in whole milk powder production, reaching 59,000 metric tons (MT). Projections suggest that whole milk powder exports will amount to 9,000 MT, while imports are expected to reach 4,000 MT to meet domestic demand.
Additionally, skim milk powder production is projected to experience a 5.9% increase, reaching 18,000 MT in 2024. The report estimates that Chilean imports and exports of skim milk powder will remain steady at 5,000 MT and 2,000 MT, respectively.
In a notable development, the report highlights Chile's contemplation of adopting EU-style geographic indications, a regulatory shift that could impact the competitiveness of US dairy products in the Chilean market. The potential adoption of these indications raises questions about future access to and market share for US dairy exporters in Chile. Stakeholders are advised to monitor regulatory developments closely for potential implications on trade dynamics in the Chilean dairy sector.
Looking ahead to 2024, the USDA post in Chile anticipates a 3.5% increase in whole milk powder production, reaching 59,000 metric tons (MT). Projections suggest that whole milk powder exports will amount to 9,000 MT, while imports are expected to reach 4,000 MT to meet domestic demand.
Additionally, skim milk powder production is projected to experience a 5.9% increase, reaching 18,000 MT in 2024. The report estimates that Chilean imports and exports of skim milk powder will remain steady at 5,000 MT and 2,000 MT, respectively.
In a notable development, the report highlights Chile's contemplation of adopting EU-style geographic indications, a regulatory shift that could impact the competitiveness of US dairy products in the Chilean market. The potential adoption of these indications raises questions about future access to and market share for US dairy exporters in Chile. Stakeholders are advised to monitor regulatory developments closely for potential implications on trade dynamics in the Chilean dairy sector.
