Strengths and Challenges of the Chilean Dairy Sector

A recent report from the Dairy Observatory of Fedeleche highlights that the dairy sector projects a record year in processed milk production for 2025. This growth, driven by favorable climatic conditions, comes with increased national market self-sufficiency and a revival in internal consumption.

The report, which consulted 80 sector experts, notes a 4% growth in dairy product exports, with the United States as the main destination. Simultaneously, imports are expected to fall by 9%, demonstrating the growing capacity of national production to meet internal demand. These figures paint an optimistic picture and demonstrate the sector's competitiveness on the global market.

Nevertheless, the report also indicates structural challenges, with labor shortages being the most pressing issue, closely followed by increasing regulatory demands in labor, environmental, and health matters. Other key obstacles include rural crime, economic uncertainty, a lack of clear generational succession in farms, and rising input costs. These factors significantly pressure producers and threaten the long-term viability of operations.

Despite positive production indicators, Fedeleche's report reveals a worrying trend: the constant decrease in the number of dairy producers. The sector is projected to close 2025 with only 2,450 producers, indicating that although production per farm is becoming more efficient, market conditions and operational challenges are leading to consolidation and the exit of smaller producers.

The Dairy Observatory is a vital decision-making tool for both entrepreneurs and public policy formulation. Fedeleche reaffirms its commitment to working on pillars such as associativity, innovation, and sustainability to build a more resilient sector. By addressing structural challenges, the Chilean dairy industry can capitalize on its strengths and secure a competitive and future-oriented position in the global dairy market.