Market
Low-fat concentrated milk in Chile is most commonly traded as skimmed milk powder (HS 040210), supplying domestic dairy and food manufacturers and supporting reconstitution and formulation uses. Chile has substantial domestic dairy production concentrated in the southern regions (notably Los Lagos and Los Ríos), alongside a large industrial processing base tracked by ODEPA. Trade is two-way: Chile exports skim milk powder to regional markets (e.g., Brazil and Colombia) while also importing from major global suppliers (notably the United States and the European Union). The main practical market-access constraint for this product is meeting Chile’s SAG sanitary import requirements for dairy products and the Ministry of Health’s food rules for import and labeling.
Market RoleDomestic producer with two-way trade (imports and regional exports)
Domestic RoleIngredient for domestic dairy processing and food manufacturing; used for reconstitution and formulation
Market GrowthGrowing (2024 vs prior year)recent positive growth in national milk reception
Risks
Sanitary And Phytosanitary HighChile’s SAG sanitary import regime for milk and dairy products can block entry if the origin establishment is not habilitated/recognized by SAG, if animal-disease related conditions (e.g., foot-and-mouth disease controls and required treatments) are not met, or if the official sanitary certificate and labeling/lot identification do not match requirements.Confirm the origin facility’s SAG habilitation status, use the SAG-agreed certificate template in Spanish, and run a pre-shipment document/label/lot consistency check against SAG requirements for the specific dairy product.
Logistics MediumSkim milk powder is typically shipped by sea in bulk bags or industrial packs; container availability and ocean freight volatility can materially change landed cost and delivery timing for Chile-bound imports and Chilean exports.Lock freight early for peak seasons, qualify alternate carriers/ports, and structure pricing with freight adjustment clauses for longer-tenor contracts.
Regulatory Compliance MediumNon-compliance with Chile’s food rules (DS 977 Reglamento Sanitario de los Alimentos) for import and labeling can result in detention, relabeling, or rejection at the border or during in-country controls.Perform a Spanish labeling and claims review against DS 977 requirements and align product composition/identity statements with regulated definitions for dairy products.
Supply Seasonality MediumChile’s pasture-based dairy production has marked seasonality, which can affect raw milk availability for processing and influence the need for inventory buffering and/or imports of milk powders to stabilize supply for industrial users.Maintain safety stocks for key SKUs, diversify supply between domestic processors and imports, and plan procurement around seasonal milk supply patterns.
FAQ
Which HS code is commonly used for low-fat concentrated milk (skim milk powder) in Chile trade?Low-fat concentrated milk traded as skim milk powder is commonly classified under HS 040210 (milk and cream in solid forms, of a fat content by weight not exceeding 1.5%).
What are the key authorities and documents for importing skim milk powder into Chile?Chile’s Servicio Agrícola y Ganadero (SAG) sets sanitary import requirements for milk and dairy products, and consignments generally need an official sanitary (zoosanitary) certificate issued by the competent authority in the exporting country. The product and labeling must also comply with the Ministry of Health’s Reglamento Sanitario de los Alimentos (DS 977) rules that apply to food imports.
What import taxes usually apply when bringing dairy ingredients into Chile?As a general rule, imports into Chile are subject to a 6% ad valorem duty on CIF value and a 19% VAT calculated on CIF plus duty. If the goods qualify under an applicable trade agreement and the importer presents valid origin documentation, the ad valorem duty may be reduced or waived.