Improving dairying in Chile: a comparative study with dairying in Australia

© 2012 M. Carolina Garay LeivaThe Chilean Dairy Sector is currently experiencing a period of productive growth which enables it to take advantage of a market opportunity from increasing demand from developed economies. Consequently, most members of the Chilean dairy value chain are searching for production improvements in order to transform the sector and create productive and economically efficient industrial conditions to meet global demand. Nevertheless, expectations about the potential competitiveness of the Chilean dairy industry in global markets are divergent, not only because it is an industry in an early stage of development but also because of some key characteristics of the domestic market and the structure of the economy. The Chilean Dairy Sector is currently experiencing a period of productive growth which enables it to take advantage of a market opportunity from increasing demand from developed economies. Consequently, most members of the Chilean dairy value chain are searching for production improvements in order to transform the sector and create productive and economically efficient industrial conditions to meet global demand. Nevertheless, expectations about the potential competitiveness of the Chilean dairy industry in global markets are divergent, not only because it is an industry in an early stage of development but also because of some key characteristics of the domestic market and the structure of the economy. Based on the diagnosis of the Australian dairy industry this investigation leads to a group of recommendations for the Chilean Dairy Industry oriented to boost production systems, reduce costs of production, improve information flows and contemplate environmental aspects. This is also a broad, mixed research inquiry because it attempts to integrate some macroeconomic and social variables impacting on industry development