Milk market in Chile

Earlier Report Observations

The Chilean milk market volume remained stable at around 2.22 million tons in 2018 and 2019 within a highly concentrated industry structure, where four large processors controlled approximately 80% of the market. A notable increase to 2.36 million tons occurred in 2020.

Market volume held steady at 2.36 million tons in 2021, a period marked by strong international demand for whole milk powder which boosted export activity. From 2022, prolonged drought conditions limited pasture availability, reducing national milk output by 2.7% and contributing to a decline in market volume. This was accompanied by a significant rise in production costs and the sale of Fonterra's local assets to Gloria Foods of Peru, which altered the competitive landscape. These factors led market volume to fall to 2.28 million tons in 2022 and further to 2.23 million tons in 2023.

Exports of whole milk powder, a key product, fluctuated sharply, falling 59% in the first eight months of 2023, while the industry concurrently increased its focus on sustainable practices and generational renewal.

Production milk in Chile

In kind, 2018-2021, K t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

In 2021, Chile produced 2 345 K t of milk, showing broad stability compared to 2020. Over the period from 2018 to 2021, production grew by 5.3%, which translates to an annualized rate of 1.7%. The lowest production level was recorded in 2019 at 2 217 K t, with a decline of 0.4% that year. In contrast, 2020 saw the highest production at 2 352 K t, marking a significant increase of 6.1%.

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

In value, 2018-2021, M $ US

Chile's milk production value increased for the second consecutive year. In 2021, the output was valued at 4 615 M $ US, up by 8.8% compared to the previous year. From 2018 to 2021, production value rose by 5.5%, equivalent to an annualized growth rate of 1.8%. The lowest value occurred in 2019 at 4 014 M $ US, with a decline of 8.2% that year.

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

Exports milk from Chile

Exports in kind, t

In 2021, Chile's milk export volume was 26 667 t, reflecting a decrease of 15.8% from the previous year. Over the 2018-2021 period, exports fell by 23.3%, with a compound annual growth rate (CAGR) of -8.4%. The largest increase was recorded in 2020 at 2.0%.

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

From 2018 to 2021, the United States (39.2% of exports in kind), Peru (17.0% of exports in kind), and Costa Rica (12.9% of exports in kind) were the leading destinations in Chile's export structure by volume, together accounting for 69.1% of total 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

In 2021, Chile exported 52 485 K $ US worth of milk, down by 8.1% from 2020. Over the 2018-2021 period, exports decreased by 23.1%, with a compound annual growth rate (CAGR) of -8.4%. The largest decline occurred in 2019 at 17.7%, while the largest increase was in 2020 at 1.7%.

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

During 2018-2021, the United States (35.0% of exports in value terms), Peru (15.9% of exports in value terms), and Costa Rica (11.3% of exports in value terms) were the principal destinations for Chile's milk exports by value, jointly representing 62.2% of total flows.

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 to Chile

Imports in kind, t

Chile's milk imports increased for the third consecutive year. In 2021, imports reached 40 613 t, which is 0.7% higher than the previous year. Between 2018 and 2021, imports grew by 32.1%, equating to an annualized rate of 9.7%.

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

From 2018 to 2021, the United States (31.3% of imports in kind), Peru (12.4% of imports in kind), and Argentina (11.2% of imports in kind) were the main sources for Chile's milk imports by volume, together accounting for 54.9% of total flows.

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

In 2021, foreign milk supplies to Chile amounted to 77 381 K $ US, showing a gradual reduction of 5.8% compared to the previous year. Between 2018 and 2021, imports increased by 25%, with an annualized growth rate of 7.7%. The lowest value was recorded in 2019 at 58 168 K $ US, with a decline of 6.0% that year. In contrast, 2020 saw the highest value at 82 113 K $ US, marking a significant increase of 41.2%.

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

Over the 2018-2021 period, the United States (39.2% of imports in value terms), Argentina (14.1% of imports in value terms), and Uruguay (10.2% of imports in value terms) made the biggest contribution to Chile's milk imports by value, jointly representing 63.5% 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