Good news for Australian Dairy Farmers - Chilean market welcomes dairy products with the new recognition of Australia's dairy system to export.
Previously, to export dairy products from Australia to Chile, authorisation had to be obtained from the Chilean Agricultural and Livestock Service (SAG) after a visit to the production facilities.
As of this year, SAG recognises Australia's export systems for milk and milk products, therefore it will no longer need visits from SAG staff to approve production facilities before exporting to Chile, which offers an increase in export opportunities to this growing market.
Worldwide, the per capita consumption of protein in general is well linked to the increase in income of the population, especially of the middle class.
Chile has an emerging middle class that is demanding higher quality products, especially proteins such as milk and dairy products in general.
The president of the Chilean Dairy Consortium recently confirmed that the increase in dairy consumption in Chile is a trend that has been taking place for the last 30 years, where per capita consumption was 120 litres, which is now 155 litres. Moreover, the manager of the National Federation of Milk Producers, Fedeleche, has affirmed that current national production cannot cope with the recent market demand meaning that a large quantity of dairy products needs to be imported.
The Dairy Consortium highlights that cheese is the product that has registered the greatest demand and it estimates that half of the dairy products consumed by Chileans is cheese.
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Currently in Chile about 10 kilos of cheese per capita are consumed per year and if that is transformed into litres of milk, it would correspond to just over 100 litres per person.
Another diary food that has also experienced an increase is yogurt, especially since the range of this product has been expanded with the innovation in recipes with different properties, which include increased protein content, lactose-free or low in sodium.
In addition, another product that also presents a great increase in the market is the consumption of formulas, and in particular those that are produced with goat's milk, or organic labelled, being in demand.
With demand for dairy products on the increase in Chile and Australian diary producers given total access to the Chilean market Australia is set to capture a much greater market share.
If you want to know if your establishment is on the list to export to Chile, please check the following link where all Australian licensed dairy establishments able to export are detailed, with the official information published by the Department of Agriculture, Fisheries and Forestry of the Australian Government here.
I invite you to contact me to learn more about these opportunities and to receive further information.
Alejandro Concha
Austrade’s Business Development Director for Agribusiness in Chile