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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 signature campaign promise of the newly sworn-in Prabowo administration, the Free Nutritious Meals Program, will be a large driver of increased demand over the next five years as the program aims to provide milk to over 82 million beneficiaries daily by 2029.

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.

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.

Although Indonesian dairy production is still reeling from the 2022 Foot and Mouth Disease (FMD) outbreak, imports of dairy ingredients are expected to decline in 2023.

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.

The outbreak of Foot and Mouth Disease (FMD) has significantly disrupted Indonesia’s fresh milk production, which dropped 35 percent compared with the previous years’ production. The decline in domestic fresh milk production has been offset by a significant increase in imported whole milk powder. A rebound of the food service sector industry is expected to support a modest increase in the trade of dairy ingredients in 2022 and 2023.

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.