Chile: Dairy and Products Annual

  |   Attaché Report (GAIN)   |   CI2022-0022

In marketing year (MY) 2022, rainfall during the winter was abundant favoring pasture production in the southern regions of Los Lagos and Los Rios. As a result, Chilean production of milk powders increased significantly in recent months, and are expected to remain high during the remainder of the marketing year. Domestic demand for dairy products remains strong and, despite high prices, demand for milk powders is expected to remain flat in MY 2022 and MY 2023. In MY 2022, Post estimates that whole milk powder production will increase by 2.8 percent, reaching 73,000 metric tons (MT). Imports are expected to decrease to 4,000 MT to cover consumption. Post projects MY 2023 skim milk powder production to increase by 5.8 percent to 18,000 MT and imports to decrease by 10 percent to 9,000 MT.

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