Browse Data and Analysis

New labeling requirements for dairy products that may impact U.S. exports to Chile will come into effect on January 9, 2025.

Discrepancies between the information provided on the export certificate and the information on the label of the package in U.S. dairy products is causing recurring detentions at the ports of entry in Chile.

The Chilean dairy sector is crucial to the economy, producing milk, cheese, butter, yogurt, and powdered milk. In marketing year (MY) 2024, milk receipts increased by two percent to 1,293 million liters, and fluid milk production rose by seven percent.

Starting in 2025, Taiwan will eliminate tariffs on liquid milk imports from New Zealand. Taiwan dairy farmers are worried about the future, as the primary dairy product in Taiwan is fresh milk, with only a small portion used for other dairy beverages or products.

Taiwan issued a new WTO notification (G/TBT/N/TPKM/541) on June 7, 2024, amending the labeling regulations for liquid milk, which will mainly impact the nomenclature of liquid milk from the United States. Currently, liquid milk from the United States can be labeled as "fresh milk" if it complies with CNS regulation.

The 2023 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2023 calendar year.

In MY 2023, Taiwan’s liquid milk production is estimated to reach 474,000 tons and is forecast to see a slight increase in MY 2024. However, the long-term liquid milk outlook is complex and subject to unstable dynamics due to New Zealand dairy products soon to have unlimited tariff-free access to the Taiwan market in 2025.

In marketing year (MY) 2023, milk price is experiencing an increasing trend due to the low milk supply and high demand for dairy. In Chile, most processing plants produce fluid milk and cheese, very few produce yoghurt, whey, condensed milk, or other value-added dairy products.

Chile is the second-largest South American market for U.S. agricultural products. Solid political institutions and a stable macroeconomic environment, combined with high consumer purchasing power, make Chile a lucrative market for U.S. producers of wheat, cheese, pet food, alcoholic beverages, and other consumer-oriented products.

The 2022 U.S. Agricultural Export Yearbook provides a statistical summary of U.S. agricultural commodity exports to the world during the 2022 calendar year.

Taiwan MY 2023 fluid milk production is forecast to increase to 465,000 MT. During the supply chain disruptions resulting from the COVID-19 pandemic, milk imports declined by 17 percent in MY 2021, pushing local producers to exceed production expectations to meet high demand.

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.