Milk and cream market in Chile

Earlier Report Observations

The market for non-concentrated, unsweetened milk and cream in Chile expanded from 2 695 thousand tons in 2018 to 2 871 thousand tons in 2020. This growth occurred alongside the progressive implementation of the Ley 20 606 food labeling law, which introduced prominent warning seals for products high in sugars and fats, pressuring manufacturers to reformulate some milk and cream products. Subsequent legislation in 2019, Ley Nº 21 179, established specific rules for the denomination and labeling of dairy products, including a requirement to clearly label reconstituted milk made from powder or concentrate.

Market volume peaked at 2 888 thousand tons in 2021, supported by trade regulations like the Mercosur technical standard for milk and dairy products, which harmonized quality rules and affected import flows. A decline followed, with the market shrinking to 2 795 thousand tons by 2023. A primary driver of this contraction was a severe drought that significantly reduced national milk production, limiting the fresh milk supply available for processing into non-concentrated milk and cream. Concurrently, authorities intensified enforcement of the front-of-package warning labels, leading to further product adjustments.

For 2024 and 2025, regulatory evolution continued to shape the industry landscape. Updated labeling rules for reconstituted milk, requiring origin information on the front of packaging, came into force. Furthermore, a shortage of domestic fresh milk led to increased imports of skim milk powder and whey, altering the raw material base for some products. The sector also prepared for a new standardized raw milk supply contract, anticipated to influence production costs for processors.

Production milk and cream in Chile

In kind, 2018-2021, K t

Top producers of milk and cream, 2018-2021

World map of production of milk and cream, 2018-2021

Chile's milk and cream production increased for the second consecutive year. In 2021, production reached 2 875 thousand tonnes, showing little change from the previous year. Over the period from 2018 to 2021, production grew by 6.7%, which translates to an average annual increase of 2.2%. The lowest production level was recorded in 2019 at 2 690 thousand tonnes. That year saw the smallest decline of 0.1%, while the largest increase occurred in 2020 with a growth of 6.4%.

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

Exports milk and cream from Chile

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Exports reached their highest volume in 2019 and their lowest in 2020, with a 13.7-fold difference between these years. In 2021, Chile's milk and cream exports amounted to 680 tonnes, representing a substantial year-over-year increase of 623.5%. The minimum value was recorded in 2020 at 94 tonnes, while the maximum was in 2019 at 1 284 tonnes. The largest decline occurred in 2020 with a drop of 92.7%.

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

From 2018 to 2021, China clearly dominated Chile's milk and cream exports in volume terms, accounting for 87.1% of total flows. Other countries each held significantly smaller shares.

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

The market exhibited an unstable trend throughout the period. Exports peaked in 2019 and bottomed out in 2020, with a 4.7-fold difference between these years. In 2021, Chile's milk and cream exports totaled 491 thousand US dollars, marking a sharp rise of 162.5% compared to the previous year. The minimum value was recorded in 2020 at 187 thousand US dollars, while the maximum was in 2019 at 883 thousand US dollars. The largest decline occurred in 2020 with a decrease of 78.8%.

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

Between 2018 and 2021, China was the dominant destination for Chile's milk and cream exports in value terms, accounting for 72.6% of total flows. The remaining share was distributed among several smaller markets.

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

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

Imports milk and cream to Chile

Imports in kind, t

The data reveals irregular changes, indicating a volatile market environment. Imports reached their maximum in 2021 and their lowest point in 2018, with a 6.1-fold amplitude between these years. In 2021, foreign milk and cream supplies to Chile registered 14 326 tonnes, which is 64.7% higher than in 2020. The largest decline was recorded in 2020 with a drop of 24.2%, while the largest increase occurred in 2019 with a surge of 391.5%.

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

From 2018 to 2021, Spain (with 34.8% of imports in volume terms), Poland (also 34.8%), and Argentina (13.8%) were the principal suppliers of milk and cream to Chile. Together, these three countries accounted for 83.4% of total imports in volume terms.

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 data shows irregular changes, pointing to a volatile market environment. A 6.3-fold variation was recorded between the maximum in 2021 and the minimum in 2018. In 2021, cross-border shipments of milk and cream to Chile reached 10 961 thousand US dollars, reflecting a sharp improvement of 88.8% compared to 2020. The largest decline occurred in 2020 with a decrease of 26.4%, while the largest increase was in 2019 with a rise of 350.8%.

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

Throughout 2018 to 2021, Poland (with 33.1% of imports in value terms), Spain (32.7%), and Argentina (12.6%) formed the core group of markets for Chile's milk and cream imports. Together, they represented 78.4% of total flows.

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

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