Butter, dairy spreads and milk fats market in Chile

Earlier Report Observations

The Chilean market for butter and milk fats began the period at 56 880 t in 2018. The following year, volume declined to 54 890 t as the implementation of Law 20.606 on food labeling raised consumer awareness of saturated fat content, likely dampening demand for traditional butter products. This regulatory shift prompted manufacturers to reformulate products to reduce critical nutrients. Despite this, production increased in 2020, pushing market volume up to 59 294 t.

Market expansion continued into 2021, with volume reaching 64 532 t driven by a surge in imports. However, in 2022 volume fell to 60 784 t. This contraction was primarily due to a 2.7% drop in national milk reception, which constrained butter production, coupled with rising input costs for fats and oils influenced by inflation, transport, and drought in supplier countries. By 2023, production recovered, leading to a moderate market rebound to 62 741 t.

Beyond 2023, regulatory developments remained active. Front-of-package labeling rules were formalized in 2022 with phased implementation, and in November 2025, Decree No. 45 amended sanitary regulations for milk and dairy products, setting new standards for butter and derivatives.

Production butter, dairy spreads and milk fats in Chile

In kind, 2018-2021, t

Top producers of butter, dairy spreads and milk fats, 2018-2021

World map of production of butter, dairy spreads and milk fats, 2018-2021

Chile's production of butter, dairy spreads, and milk fats has grown for the third year in a row. In 2021, the country produced 59 115 tons, marking a slight increase of 2.0% compared to the previous year. Looking at the period from 2018 to 2021, production rose by 16.9%, which translates to an average annual growth rate of 5.3%.

Annual dynamics of production in Chile in kind, 2018-2021, t

In value, 2018-2021, M $ US

Chile's production of butter, dairy spreads, and milk fats in value terms has increased for the second consecutive year. In 2021, the output was valued at 294.2 million US dollars, reflecting a moderate gain of 6.8% over the prior year. However, between 2018 and 2021, overall production value decreased by 2.6%, equivalent to an annualized decline of 0.9%. The lowest point was in 2019, with a value of 259.8 million US dollars, when the largest drop of 14.0% occurred.

Annual dynamics of production in Chile in value, 2018-2021, M $ US

Exports butter, dairy spreads and milk fats from Chile

Exports in kind, t

Following two years of growth, Chile's exports of butter, dairy spreads, and milk fats in volume terms declined. In 2021, exports totaled 1 416 tons, representing a sharp decrease of 48.7% compared to 2020. Over the 2018-2021 period, exports fell by 16.2%, averaging an annual decline of 5.7%. The peak was in 2020 at 2 760 tons, while the largest increase of 29.4% was recorded in 2019.

Annual dynamics of product's exports from Chile in kind, 2018-2021, t

From 2018 to 2021, the United States, Peru, and Mexico were the top contributors to Chile's exports in volume terms, accounting for 39.9%, 35.5%, and 17.7% of the total, respectively. Together, these three countries made up 93.1% of all export flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Chile in kind, 2018-2021

Exports in value, K $ US

After two years of increases, Chile's exports of butter, dairy spreads, and milk fats in value terms dropped. In 2021, exports amounted to 7 046 thousand US dollars, which is 46.3% lower than the previous year. Between 2018 and 2021, exports decreased by 30.1%, with an average annual decline of 11.3%. The highest value was in 2020 at 13 116 thousand US dollars, when the largest increase of 18.5% occurred.

Annual dynamics of product's exports from Chile in value, 2018-2021, K $ US

During 2018-2021, the United States, Peru, and Mexico remained the primary buyers of Chile's butter, dairy spreads, and milk fats in value terms, with shares of 40.8%, 35.0%, and 18.5%, respectively. Combined, these markets accounted for 94.3% of total export value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Chile in value, 2018-2021

Imports butter, dairy spreads and milk fats to Chile

Imports in kind, t

After two years of contraction, Chile's imports of butter, dairy spreads, and milk fats in volume terms rebounded. In 2021, imports reached 6 833 tons, showing a significant advance of 66.3% year-over-year. However, over the 2018-2021 period, imports overall decreased by 14.5%, equating to an annualized decline of 5.1%. The lowest point was in 2020 at 4 108 tons, when the largest drop of 29.1% was recorded.

Annual dynamics of product's imports to Chile in kind, 2018-2021, t

Throughout 2018-2021, New Zealand dominated Chile's import structure in volume terms, holding an 87.5% share of total flows. Other markets had relatively minor shares in comparison.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Chile in kind, 2018-2021

Imports in value, K $ US

The market for imports in value terms showed noticeable fluctuations during this period. Import levels varied significantly, with a 2.2-fold difference between the high in 2018 and the low in 2020. In 2021, imports totaled 32 050 thousand US dollars, indicating a substantial increase of 77.1% compared to the previous year. The minimum value was in 2020 at 18 099 thousand US dollars, while the largest decline of 35.9% occurred in 2019.

Annual dynamics of product's imports to Chile in value, 2018-2021, K $ US

From 2018 to 2021, New Zealand clearly dominated Chile's imports of butter, dairy spreads, and milk fats in value terms, capturing 87.7% of total flows. Other countries each held significantly smaller shares.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Chile in value, 2018-2021