WORLD TRADE  
ORGANIZATION  G/SG/N/6/CHL/12 
18 September 2009 
 (09-4418) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON 
SAFEGUARDS ON INITIATION OF AN INVESTIGATION 
AND THE REASONS FOR IT 
 
CHILE 
 
(Powdered milk and Gouda cheese) 
   The following communication, dated 9 September 2009, is being circulated at the request of 
the delegation of Chile. 
 
_______________ 
 
  Pursuant to Article 12.1(a) of the Agreement on Safeguards, Chile hereby notifies that at its 
309
th meeting, held on 27 August 20 09, the investigating authority decided to initiate a safeguards 
investigation concerning imports of powdered milk, classified under the following tariff subheadings:  
0402.1000, 0402.2111, 0402.21 12, 0402.2113, 0402.2114, 0402 .2115, 0402.2116, 0402.2117, 
0402.2118, 0402.2911, 0402.2912, 0402.2913, 0402.2914, 0402.2915, 0402.2916, 0402.2917 and 0402.2918;  and Gouda cheese, classified under ta riff subheading 0406.9010 in Chile's harmonized 
tariff. 
 
1. Specify the date when the investigation was initiated. 
 
 The investigation was initiated on 4 Septem ber 2009 and notice thereof was published that 
same day in Chile's Official Journal. 
 
2. Specify the product subject to the investigation. 
 
 Powdered milk, classified under the following  tariff subheadings:  0402.1000, 0402.2111, 
0402.2112, 0402.2113, 0402.21 14, 0402.2115, 0402.2116, 0402 .2117, 0402.2118, 0402.2911, 
0402.2912, 0402.2913, 0402.2914, 0402.2915, 0402.2916, 0402.2917 and 0402.2918;  and Gouda 
cheese, classified under tariff subheading 0406.9010.  
3. Provide the reasons for the initiation of investigation. 
 (i) The investigation was initiated at the request  of the National Milk Producers' Federation 
(FEDELECHE F.G.), which filed a safegua rd application on 10 August 2009.  The 
application is supported by a representati ve proportion of the domestic industry. 
 The claim is that the domestic industry is made up of the producers of farm-gate milk, 
powdered milk and Gouda cheese, insofar as:  (i) farm-gate milk is in direct competition with 
powdered milk, since both are raw materials used in  manufacturing dairy products at a higher level of 
processing;  (ii) farm-gate milk is in direct co mpetition with Gouda cheese, since industrial producers G/SG/N/6/CHL/12 
Page 2  
 
  must decide either to obtain farm-gate milk for producing these goods or to purchase processed Gouda 
cheese through importation.  It was decided to excl ude producers of powdered milk and Gouda cheese 
from the investigation, since they are also major importers of the product that is the subject matter of 
the application.  
(ii) Evidence on the basis of which the investigation was initiated: 
 
 Analysis of imports
 
 
 The ratio of imports of powdered milk and Gouda cheese to domestic production of farm-gate 
milk reached 5.3 per cent in the period January-June 2009, indicating a relative increase in imports.  
This figure shows a 5.2 per cent growth in share co mpared with the 5.0 per cent reached in the same 
period in 2008.  This is due to the fact that dom estic output trended downwards more sharply than the 
reduction in imports.  
 In 2008/2007, this coefficient was up by 126.3 per cent, rising from 1.9 per cent to 4.3 per 
cent over that period.   Imports of powdered milk in the period January-July 2009 amounted to 4,257 tonnes, down by 19.2 per cent in relation to the same period in  2008.  This downward trend was preceded by an 
increase of 158.2 per cent in 2008/2007.  In the period January-July 2009, powdered milk imports 
came chiefly from Argentina and Uruguay. 
  The volume of imports of Gouda cheese in the first seven months of 2009 amounted to 2,717 tonnes, i.e. an increase of 48.5 per cent compared with the same period in 2008.  Gouda cheese 
imports have trended upwards si nce 2007.  In the period January-J une 2009, the imports were from 
Argentina and Uruguay. 
 
 Injury, threat of injury and causal link
 
 
 In the period January-June 2009, domestic farm-gate milk prices in UF ( unidades de fomento  
– Chilean inflation-indexed monetary units) fell by  27.2 per cent in relation to the same period in 
2008.  In 2008/2007, prices (also in UF) had increased by 5.6 per cent and by 35.7 per cent in 
2007/2006.   Approximately 46 per cent of the costs of  farm-milk production correspond to fodder, 
14.3 per cent to wages/salaries and 12.2 per cent to repl acement cost.  The total cost is reported to be 
$159/litre, meaning losses at recent prices at ever y level of the (small, medium-size and major) 
producer chain.   In the first half of 2009, domestic produc tion of farm-gate milk fell by 11.7 per cent 
compared to the same period in the preceding year.  In contrast, output had increased by 4.1 per cent in 2008. 
 
 In the first half of 2009, domestic sales of farm -gate milk (delivered to dairy plants) fell by 
11.7 per cent in relation to the same period in the pr evious year.  In contrast, figures had been up by 
5.2 per cent in 2008.  
 In the first half of 2009, apparent consumpti on of dairy products fell by 11.1 per cent, chiefly 
as a result of the decline in domestic output.  In 2008, however, apparent c onsumption had grown by 
6.3 per cent, firstly because of an increase in pr oduction and secondly owing to  a growth in imports. 
  G/SG/N/6/CHL/12 
 Page 3 
 
 
   In 2008, average labour productivity in the sector is claimed to have reached 
50,000 litres/worker in 2008.  In 2007 and 20 06, it is reported to have been 47,540 and 
46,106 litres/worker, respectively.   The sector is said to employ around 44,010 pe ople, without significant changes since 2006. 
 
 Threat of injury
 
 
 According to the information available, the grow th in imports has had the direct effect of the 
dairy industry adjusting producer prices downwards to significantly lower levels than would have 
been the case as a result of the seasonal effect in th e spring/summer period.  This situation appears to 
be compelling significant numbers of milk producer s to close down and l eading to disinvestment, 
liquidation of cattle, loss of ge netic heritage, and investiga tions lasting many years. 
  In the medium term, supplies of fresh milk would contract by some 500 million litres, with 
the loss of some 10,000 direct jobs, representing 22 per cent of national employment in this industry.  
It is claimed that milk producer s are operating their dairy plants below production cost as a result of 
the sector's performance in the first few months of  2009 and the continuing effects of the increase in 
production costs in 2008.   The Commission has taken into consideration the recent pricing patterns published by major 
processing plants, which have announced a price drop of around $20/litre of milk delivered as of 
September.  
 Causal link
 
  The share of total imports of the products at  issue in apparent domestic milk consumption 
reached 8.3 per cent in the period January-June 2009,  i.e. an increase over the 7.8 per cent share 
recorded in the same period in the preceding year.  This is taking place in a context of both declining 
imports and lower apparent cons umption due to a more significant decline in domestic output. 
  This increase is due in part to imports of G ouda cheese because their share in consumption is 
on the rise (from 1.3 to 2.1 per cent). 
  After recording historic highs until early 2008,  international reference prices dropped sharply 
in the wake of the international economic crisis.  In 2009 these values have remained stable, with a 
slight upward trend. 
 
 Domestic prices of farm-gate milk in dollars show a correlation coefficient of 0.84 and 0.88 with international prices of powdered milk fro m northern Europe and Oceania, respectively. 
  Domestic prices in dollars show a correlati on coefficient of around 0.60 and 0.9 with import 
prices of powdered milk and Gouda cheese, respectively. 
 
4. Provisional measure:   To date the investigating authority has not recommended the 
application of a provisional safeguard measure on imports of powdered milk or Gouda cheese. 
 5. Proposed date of introduction of the measure:   Not applicable. 
 
6. Expected duration of the measure:   Not applicable. 
 G/SG/N/6/CHL/12 
Page 4  
 
  7. Provide the basis for: 
 
 (i) Making a preliminary determination, as pr ovided for in Article 6 of the Agreement on 
Safeguards, that increased imports are causi ng or threatening to cause serious injury: 
 
  See 3(ii) above. 
 8. Other information  (as contained in the notice of the initiation of the investigation published 
in the Official Journal):  
 Period of the investigation
:  The final decision will be adopted within 90 days from the 
initiation of the investigation.   Findings relating to increased imports  causing or threatening to cause injury
:  Increase in 
imports of powdered milk and G ouda cheese in relation to production. 
 
 Public hearing :  To be held on 27 October 2009 at 10 a.m. at Agustinas 853, 12th floor, 
Santiago.  Parties wishing to appear at the heari ng should apply in writing to the Technical Secretariat 
up until the third working day prior to the date fixed for the hearing.   Any information which the interested parties may wish to submit in writing and any request 
for a hearing before the Commission that they may wish to put forward should be submitted within 
30 days following the initiation of this investigation to the Technical Secretariat at the following address:  Secretaría Técnica, Morandé 115, 3
rd floor, Central Bank of Chile, tel.:  6702866, 
fax:  6702414.  
 If part of the information provided is of a c onfidential nature, the party concerned should give 
the grounds justifying confidentiality and furnish pu blic summaries of such information, which should 
be as detailed as possible.  This requirement is d esigned to secure transparency and due access by all 
the parties to the information relating to this i nvestigation.  If the summaries are not duly provided 
and in the absence of just cause,  the Commission may disregard the information deemed to be 
confidential. 
 
 Any additional information may be consulted at the Technical Secretariat.  G/SG/N/6/CHL/12 
 Page 5 
 
 
  ANNEXES 
 
Table 1  
 
Volume of Powdered Milk Imports 
(Tonnes)  
 
Month Argentina Brazil United 
States New 
Zealand Netherlands Uruguay ROW TOTAL 
Jan-07 106 - - - - 168 - 273 
Feb-07 - - - 251 - 150 - 401 
Mar-07 - - - 16 - 133 - 149 
Apr-07 - - - - - 64 0 64 
May-07 - - - 16 312 50 150 528 
June-07 - - - - 508 50 48 606 
July-07 - 75 15 - - 67 125 283 
Aug-07 - - 150 - - 67 75 292 
Sep-07 - 100 15 16 - 50 - 181 
Oct-07 - - 14 - - 18 - 32 
Nov-07 - - - - - 39 - 39 
Dec-07 - - - - - 25 25 50 
Jan-08 - 150 - - - 25 25 200 
Feb-08 - - 596 - - - - 596 
Mar-08 50 25 352 16 - - - 443 
Apr-08 - - 198 414 - - 0 612 
May-08 25 - 1,038 306 - - 48 1,417 
June-08 107 - 404 374 - - 25 910 
July-08 132 - 367 594 - - - 1,092 
Aug-08 125 - 456 198 - - - 779 
Sep-08 100 - 413 161 - - - 674 
Oct-08 277 - 79 90 - - - 446 
Nov-08 25 - - 90 - - - 115 
Dec-08 200 - - - - - - 200 
Jan-09 25 - - - - - - 25 
Feb-09 75 - - - - 50 - 125 
Mar-09 625 - - - - 75 - 700 
Apr-09 950 - 3 - - 550 - 1,503 
May-09 239 - - - - 372 - 611 
June-09 237 - 18 - - 222 1 479 
July-09 252 - 54 - - 495 13 814 
Aug-09 (*) 81 - - - - 225 - 306 
Sep-09         
Oct-09         
Nov-09         
Dec-09         
(*) Figures at 7 August 
 
2007 106 175 194 299 820 881 423 2,898 
2008 1,041 175 3,903 2,241 - 25 98 7,484 
Jan-July 08 314 175 2,955 1,703 - 25 98 5,270 
Jan-July 09 2,404 - 75 - - 1,764 14 4,257 
 
% Var. 08/07 885.6 0 1,907.6 649. 1 -100.0 -97.2 -76.8 158.3 
%Var. Jan-Jul 
09/08 665.4 -100.0 -97.5 -100.0  6,956.0 -85.8 -19.2 
 
(1) Includes tariff subheadings 0402.1000, 0402.2111,  0402.2911, 0402.2112 to 0402.2118 and 0402.2912 to 0402.2918. 
 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service.  G/SG/N/6/CHL/12 
Page 6  
 
  Table 2
 
 
Price of Powdered Milk Imports 
US$/Tonne 
 
Month Argentina Brazil United 
States New 
Zealand Netherlands Uruguay ROW TOTAL 
Jan-07 2,433 - - - - 2,184 - 2,280 
Feb-07 - - - 2,384 - 2,145 - 2,295 
Mar-07 - - - 3,157 - 2,292 - 2,385 
Apr-07 - - - - - 1,818 1,127 1,818 
May-07 - - - 3,157 3,434 1,630 3,476 3,266 
June-07 - - - - 3,721 1,757 3,368 3,531 
July-07 - 4,421 5,370 - - 2,091 3,672 3,586 
Aug-07 - - 6,150 - - 4,203 5,900 5,640 
Sep-07 - 5,252 5,370 5,137 - 2,043 - 4,368 
Oct-07 - - 8,290 - - 3,015 - 5,271 
Nov-07 - - - - - 2,616 - 2,616 
Dec-07 - - - - - 2,201 4,900 3,551 
Jan-08 - 4,878 - - - 3,058 4,900 4,653 
Feb-08 - - 3,671 - - - - 3,671 
Mar-08 3,828 4,925 3,646 4,942 - - - 3,786 
Apr-08 - - 3,260 3,462 - - 2,000 3,397 
May-08 3,593 - 3,369 3,457 - - 4,607 3,434 
June-08 4,304 - 3,575 3,609 - - 3,875 3,683 
July-08 3,700 - 3,303 3,457 - - - 3,434 
Aug-08 3,686 - 3,523 3,453 - - - 3,532 
Sep-08 3,702 - 3,615 3,453 - - - 3,589 
Oct-08 3,984 - 3,652 3,686 - - - 3,866 
Nov-08 3,700 - - 3,706 - - - 3,705 
Dec-08 3,603 - - - - - - 3,603 
Jan-09 2,180 - - - - - - 2,180 
Feb-09 2,100 - - - - 2,031 - 2,072 
Mar-09 2,243 - - - - 2,075 - 2,225 
Apr-09 2,295 - 2,822 - - 2,079 - 2,217 
May-09 2,312 - - - - 2,104 - 2,185 
June-09 2,240 - 2,273 - - 2,185 - 2,223 
July-09 2,194 - 2,238 - - 2,135 2,890 2,172 
Aug-09 (*) 2,396 - - - - 2,148 - 2,213 
Sep-09         
Oct-09         
Nov-09         
Dec-09         
(*) Figures at 7 August 
 
2007 2,433 4,896 6,175 2,614 3,612 2,286 4,036 3,374 
2008 3,821 4,885 3,500 3,512 - 3,058 4,495 3,592 
Jan-July 08 3,918 4,885 3, 476 3,505 - 3,058 4,495 3,575 
Jan-July 09 2,260 - 2,268 - - 2,112 3,094 2,201 
 
%Var. 08/07 57.1 -0.2 -43.3 34.4 -100.0 33.8 11.4 6.5 
%Var. Jan-Jul 
09/08 -42.3 -100.0 -34.7 -100.0 - -30.9 -31.2 -38.4 
 
(1) Includes tariff subheadings 0402.1000, 0402.2111,  0402.2911, 0402.2112 to 0402.2118 and 0402.2912 to 0402.2918. 
 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service.  
  G/SG/N/6/CHL/12 
 Page 7 
 
 
  Table 3  
 
Price of Powdered Milk Imports 
UF/Tonne 
 
Month Argentina Brazil United 
States New 
Zealand Netherlands Uruguay ROW TOTAL 
Jan-07 72 - - - - 64 - 67 
Feb-07 - - - 70 - 63 - 68 
Mar-07 - - - 92 - 67 - 70 
Apr-07 - - - - - 53 33 53 
May-07 - - - 89 97 46 98 92 
June-07 - - - - 106 50 96 100 
July-07 - 123 149 - - 58 102 100 
Aug-07 - - 170 - - 116 163 156 
Sep-07 - 142 145 139 - 55 - 118 
Oct-07 - - 216 - - 78 - 137 
Nov-07 - - - - - 68 - 68 
Dec-07 - - - - - 56 125 91 
Jan-08 - 119 - - - 75 120 114 
Feb-08 - - 87 - - - - 87 
Mar-08 86 110 82 111 - - - 85 
Apr-08 - - 73 78 - - 45 76 
May-08 84 - 79 81 - - 108 81 
June-08 105 - 88 88 - - 95 90 
July-08 91 - 81 85 - - - 85 
Aug-08 92 - 88 86 - - - 88 
Sep-08 94 - 92 88 - - - 91 
Oct-08 117 - 107 108 - - - 113 
Nov-08 113 - - 113 - - - 113 
Dec-08 109 - - - - - - 109 
Jan-09 64 - - - - - - 64 
Feb-09 60 - - - - 58 - 59 
Mar-09 63 - - - - 59 - 63 
Apr-09 64 - 79 - - 58 - 62 
May-09 62 - - - - 57 - 59 
June-09 59 - 60 - - 58 - 59 
July-09 57 - 58 - - 55 75 56 
Aug-09 (*) 63 - - - - 56 - 58 
Sep-09         
Oct-09         
Nov-09         
Dec-09         
(*) Figures at 7 August 
 
2007 72 134 170 76 102 65 112 95 
2008 103 118 84 86 - 75 108 89 
Jan-July 08 95 118 82 84 - 75 108 85 
Jan-July 09 62 - 59 - - 57 67 60 
 
% Var. 08/07 44.1 -12.0 -50.4 13.1 -100.0 14.8 -4.0 -6.9 
%Var. Jan-Jul 
09/08 -34.2 -100.0 -27.9 -100.0 - -23.9 -37.5 -29.3 
 
(1) Includes tariff subheadings 0402.1000, 0402.2111,  0402.2911, 0402.2112 to 0402.2118 and 0402.2912 to 0402.2918. 
 
Source:  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service. 
 G/SG/N/6/CHL/12 
Page 8  
 
  Table 4
 
 
Volume of Gouda Cheese Imports(1) 
Tonnes 
 
Month Argentina Uruguay ROW TOTAL 
Jan-07 50 72 0 122 
Feb-07 50 50 0 100 
Mar-07 22 58 0 80 
Apr-07 0 68 0 68 
May-07 94 215 0 309 
June-07 25 94 0 118 
July-07 23 152 0 175 
Aug-07 54 110 47 210 
Sep-07 2 114 0 116 
Oct-07 61 43 0 104 
Nov-07 0 54 0 54 
Dec-07 6 37 0 42 
Jan-08 158 54 0 211 
Feb-08 47 43 0 90 
Mar-08 89 3 0 92 
Apr-08 174 63 45 282 
May-08 170 64 49 282 
June-08 355 65 0 420 
July-08 410 43 0 453 
Aug-08 142 0 6 148 
Sep-08 142 0 0 142 
Oct-08 99 45 0 144 
Nov-08 118 96 0 214 
Dec-08 71 0 6 77 
Jan-09 123 70 0 193 
Feb-09 104 50 23 177 
Mar-09 102 70 0 172 
Apr-09 316 25 0 341 
May-09 410 68 0 478 
June-09 435 184 0 618 
July-09 469 268 0 737 
Aug-09 (*) 198 23 0 220 
Sep-09     
Oct-09     
Nov-09     
Dec-09     
(*) Figures at 7 August 
 
2007 386 1,064 47 1,497 
2008 1,975 475 105 2,555 
Jan-July 08 1,403 334 94 1,830 
Jan-July 09 1,960 734 23 2,717 
 
% Var. 08/07 411.1 -55.4 123.4 70.6 
%Var. Jan-Jul 09/08 39.7 120.0 -75.7 48.5 
 
(1) Includes tariff subheading 0406.9010. 
 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service .  G/SG/N/6/CHL/12 
 Page 9 
 
 
  Table 5  
 
Price of Gouda Cheese Imports(1) 
US$/Tonne 
 
Month Argentina Uruguay ROW TOTAL 
Jan-07 2,537 2,611  2,581 
Feb-07 2,633 2,792  2,713 
Mar-07 2,749 2,901  2,859 
Apr-07  3,126 15,639 3,128 
May-07 2,968 3,177 14,159 3,114 
June-07 3,167 3,565  3,481 
July-07 3,166 3,577  3,523 
Aug-07 3,254 3,786 4,150 3,731 
Sep-07 3,800 4,021  4,017 
Oct-07 4,050 4,765  4,346 
Nov-07  4,678 18,358 4,722 
Dec-07 4,779 4,500  4,539 
Jan-08 4,523 4,678  4,562 
Feb-08 4,499 4,910  4,695 
Mar-08 4,752 4,025  4,728 
Apr-08 4,438 4,806 4,747 4,570 
May-08 4,563 4,550 5,164 4,664 
June-08 4,430 4,795  4,486 
July-08 4,545 4,856  4,574 
Aug-08 4,422  5,002 4,446 
Sep-08 4,303   4,303 
Oct-08 4,259 3,546  4,036 
Nov-08 3,924 3,936  3,929 
Dec-08 3,780  4,057 3,800 
Jan-09 3,146 2,920  3,064 
Feb-09 2,902 2,693 6,043 3,245 
Mar-09 3,008 2,822 10,610 2,933 
Apr-09 2,673 2,776  2,680 
May-09 2,738 2,770 9,480 2,743 
June-09 2,634 2,849  2,698 
July-09 2,712 2,936  2,794 
Aug-09 (*) 2,857 2,839  2,856 
Sep-09     
Oct-09     
Nov-09     
Dec-09     
(*) Figures at 7 August 
 
2007 3,124 3,532 4,209 3,448 
2008 4,418 4,469 4,918 4,448 
Jan-July 08 4,514 4,747 4,965 4,580 
Jan-July 09 2,747 2,864 6,053 2,806 
 
% Var. 08/07 41.4 26.5 16.9 29.0 
% Var. Jan-Jul 09/08  -39.7 21.9 -38.7 
 
(1) Includes tariff subheading 0406.9010. 
 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service. 
 G/SG/N/6/CHL/12 
Page 10  
 
  Table 6
 
 
Price of Gouda Cheese Imports(1) 
UF/Tonne 
 
Month Argentina Uruguay ROW TOTAL 
Jan-07 75 77 0 76 
Feb-07 78 82 0 80 
Mar-07 81 85 0 84 
Apr-07 0 91 453 91 
May-07 84 90 400 88 
June-07 90 101 0 99 
July-07 88 99 0 98 
Aug-07 90 105 115 103 
Sep-07 103 109 0 109 
Oct-07 105 124 0 113 
Nov-07 0 122 478 123 
Dec-07 122 115 0 116 
Jan-08 110 114 0 111 
Feb-08 106 116 0 111 
Mar-08 106 90 0 106 
Apr-08 100 108 107 103 
May-08 107 107 121 110 
June-08 109 117 0 110 
July-08 112 120 0 113 
Aug-08 111 0 125 111 
Sep-08 109 0 0 109 
Oct-08 125 104 0 118 
Nov-08 120 120 0 120 
Dec-08 114 0 123 115 
Jan-09 92 85 0 89 
Feb-09 83 77 173 93 
Mar-09 85 80 299 83 
Apr-09 74 77 0 75 
May-09 74 75 255 74 
June-09 69 75 0 71 
July-09 70 76 0 72 
Aug-09 (*) 75 74 0 74 
Sep-09     
Oct-09     
Nov-09     
Dec-09     
(*) Figures at 7 August 
 
2007 87 98 117 96 
2008 110 114 115 111 
Jan-July 08 108 113 114 109 
Jan-July 09 82 79 173 82 
 
% Var. 08/07 26.3 15.7 -1.0 15.7 
% Var.  Jan-Jul 09/08  -29.9 51.7 -25.2 
 
(1) Includes tariff subheading 0406.9010. 
 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by the National Customs Service. 
  G/SG/N/6/CHL/12 
 Page 11 
 
 
  Table 7  
 
Domestic Selling Price of Farm-Gate Milk 
Unit Value/Litres Thousand 
 
Year  2006   2007   2008   2009  
 In pesos In UF In dollars In pesos In UF In dollars In  pesos In UF In dollars In pesos In UF In dollars
January 121,990 6.8 232.6 117,660 6.4 217.7 195,880 9.9 407.3 162,050 7.6 260.1 
February 123,390 6.9 234.7 122,810 6.7 226.5 196,440 9.9 420.4 159,240 7.5 262.8 
March 126,130 7.0 238.5 133,590 7.3 248.1 200,630 10.1 452.9 150,890 7.2 254.5 
April 127,770 7.1 247.0 144,640 7.9 271.7 205,300 10.3 459.9 150,910 7.2 258.8 
May 129,470 7.2 248.6 172,400 9.3 330.3 207,630 10.4 441.7 157,240 7.5 277.9 
June 129,740 7.2 239.2 187,530 10.1 356.0 207,680 10.3 420.7 156,930 7.5 283.7 
July 128,690 7.1 238.0 198,260 10.6 381.4 205,870 10.1 409.9    
August 128,030 7.0 237.7 201,400 10.7 385.1 204,990 9.9 396.7    
September 118,170 6.4 219.4 200,310 10.5 387.5 203,690 9.7 384.2    
October 115,770 6.3 218.0 200,780 10.4 400.4 191,260 9.1 309.3    
November 114,980 6.2 218.0 202,950 10.4 400.3 187,490 8.8 287.8    
December 114,590 6.2 217.2 199,900 10.2 400.4 171,700 8.0 264.4    
Ann. av. 123,227 6.8 232.4 173,519 9.2 333.8 198,213 9.7 387.9    
Av.  Jan-June 126,415 7.0 240.1 146,438 7.9 275.0 202,260 10.2 433.8 156,210 7.4 266.3 
Var. /prev. year    40.8% 35.7% 43.6% 14.2% 5.6% 16.2%    
Var./prev.  
Jan-June    15.8% 13.1% 15.0% 38.1% 28.0% 58% -22.8% -27.2% -38.6% 
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA.  
 
 
Table 8  
 
Production Cost per Litre of Fresh Milk 
 
Item $/Litre  % Share  
Concentrates 31.29  23.6 
Subtotal, pastures, fodder, other 24.84  18.7 
Wages/salaries 19.00  14.3 
Replacement costs 16.17  12.2 
Total, administrative expenses 10.70  8.1 
Subtotal, maintenance 8.40 6.3 
Fuel and lubricants 5.19 3.9 
Health 4.80 3.6 
Depreciation 4.50 3.4 
External fodder 4.25 3.2 
Insemination 1.50 1.1 
Financial outlay 1.00 0.8 
Boosting, Lactotropin 0.90 0.7 
Total Cost 132.54  100.0  
Source:  Complaint. G/SG/N/6/CHL/12 
Page 12  
 
  Table 9
 
 
Domestic Market Indicators.  Farm-Gate Milk 
Volume (L/Thousand) 
 
Year:  2006              
Variables Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec TOTAL
Domestic production (1) 229,152 191,555 194,583 185,796 181,039 162,029 165,907 171,099 189,729 232,013 246,355 250,742 2,400,000
Total sales              
Domestic sales (2) 173,594 145,112 147,406 140,749 137,145 122,745 125,683 129,616 143,729 175,761 186,626 189,949 1,818,115
F o r e i g n  s a l e s               
Total imports              
Inventories              
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA and the National Customs Service. 
 
Year:  2007              
Variables Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec TOTAL
Domestic production (1) 230,183 186,314 196,202 178,228 173,787 162,555 164,945 170,576 194,229 248,064 266,447 278,470 2,450,000
Total sales              
Domestic sales (2) 176,128 142,561 150,127 136,374 132,975 124,381 126,210 130,518 148,617 189,809 203,875 213,075 1,874,650
Foreign sales              
Total imports              
Inventories              
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA and the National Customs Service. 
 
Year:  2008              
Variables Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec TOTAL
Domestic production (1) 250,314 198,499 196,434 193,182 192,033 176,853 175,046 183,069 206,211 259,240 266,195 252,923 2,549,999
Total sales              
Domestic sales (2) 193,540 153,477 151,880 149,366 148,478 136,741 135,343 141,547 159,440 200,441 205,819 195,557 1,971,627
F o r e i g n  s a l e s               
Total imports              
Inventories              
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA and the National Customs Service. 
 
Year:  2009              
Variables Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec TOTAL
Domestic production (1) 215,176 169,423 183,590 174,442 172,598 151,193       1,066,422
Total sales              
Domestic sales (2) 166,371 130,996 141,950 134,876 133,451 116,900       824,544
F o r e i g n  s a l e s               
Total imports              
Inventories              
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA and the National Customs Service. 
(1) Estimated by the Technical Secretar iat on the basis of annual coefficients of 0.757 for 2006;  0.765 for 2007;  and 
0.773 for 2008.  The coefficient for 2008 was used for 2009. 
(2) Sales to dairy plants. 
  G/SG/N/6/CHL/12 
 Page 13 
 
 
  Table 10  
 
International Prices and Import Prices 
(US$/Tonne) 
 
International prices Import price 
Month/Year Cheddar 
Oceania Skimmed 
milk powder 
northern 
Europe Skimmed 
milk powder
Oceania Whole milk 
powder 
northern 
Europe Whole milk 
powder 
Oceania Imported 
skimmed 
milk powderImported 
whole milk 
powder Imported 
Gouda 
cheese 
Jan-06 2,750 2,194 2,163 2,213 2,175  
Feb-06 2,750 2,175 2,181 2,200 2,188  
Mar-06 2,708 2,292 2,150 2,183 2,158  
Apr-06 2,650 2,275 2,088 2,175 2,113  
May-06 2,675 2,294 2,075 2,206 2,100  
June-06 2,675 2,363 2,050 2,231 2,063  
July-06 2,675 2,394 2,075 2,213 2,100  
Aug-06 2,617 2,635 2,092 2,250 2,092  
Sep-06 2,600 2,806 2,175 2,350 2,075  
Oct-06 2,625 2,856 2,263 2,469 2,163  
Nov-06 2,675 2,900 2,475 2,669 2,388  
Dec-06 2,800 3,031 2,825 2,988 2,688  
Jan-07 2,850 3,088 2,913 3,075 2,850 2,174 2,487 2,581
Feb-07 2,925 3,163 3,125 3,400 3,050 2,295  2,713
Mar-07 3,000 3,546 3,317 3,579 3,258 2,369 2,658 2,859
Apr-07 3,100 4,450 3,850 4,400 3,850 1,647 2,674 3,128
May-07 3,200 4,945 4,200 4,763 4,025 3,270 3,157 3,114
June-07 3,775 5,190 4,800 5,089 4,413 3,531  3,481
July-07 4,338 5,213 5,150 5,175 4,650 3,557 3,627 3,523
Aug-07 4,650 5,250 5,083 5,400 4,750 5,898 4,531 3,731
Sep-07 4,875 5,188 4,950 5,600 4,750 4,380 4,355 4,013
Oct-07 4,975 4,988 4,975 5,425 4,950 8,290 3,015 4,346
Nov-07 5,275 4,475 4,925 4,981 4,875 3,072 2,476 4,722
Dec-07 5,500 3,775 4,625 4,688 4,800 3,551  4,539
Jan-08 5,367 3,646 4,267 4,467 4,533 4,885 4,514 4,562
Feb-08 5,213 3,731 4,000 4,613 4,550 3,671  4,695
Mar-08 5,125 3,481 3,775 4,606 4,750 3,707 4,935 4,728
Apr-08 5,050 3,494 3,500 4,550 4,550 3,397 2,000 4,570
May-08 5,000 3,538 3,475 4,475 4,500 3,402 5,399 4,664
June-08 5,050 3,825 3,475 4,475 4,400 3,539 4,685 4,486
July-08 5,000 3,956 3,600 4,513 4,375 3,402 4,499 4,574
Aug-08 5,367 3,392 3,492 4,058 4,033 3,532  4,446
Sep-08 4,375 2,844 3,025 3,463 3,263 3,589  4,303
Oct-08 4,063 2,494 2,600 3,056 2,925 3,635 4,924 4,036
Nov-08 3,475 2,125 2,200 2,725 2,500 3,706 3,700 3,929
Dec-08 3,150 2,156 2,000 2,725 2,163 3,603  3,800
Jan-09 2,675 2,156 1,825 2,406 1,900 2,180  3,064
Feb-09 2,450 2,094 1,750 2,169 1,850 2,115 1,900 3,245
Mar-09 2,525 2,056 1,813 2,231 1,925 2,230 2,085 2,933
Apr-09 2,425 2,138 1,975 2,325 2,063 2,243 2,113 2,680
May-09 2,575 2,211 2,000 2,513 2,200 2,288 2,095 2,743
June-09 2,575 2,344 2,013 2,638 2,050 2,226 2,215 2,698
July-09 2,700 2,350 2,013 2,650 2,013 2,156 2,200 2,794
Aug-09 2,700 2,363 2,025 2,700 2,100 2,178 2,225 2,856
Source :  Prepared by the Technical Secretariat on the basis of data supplied by ODEPA. 
 
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