**3. Foreign cheese trade in Chile**

### **3.1 Imports**

According to data from the "Office of Agricultural Studies and Policies" ODEPA 2011 [33], Chile began a significant increase in import of cheese, which reached its annual maximum in the 2012 season, when 18,400 t were imported. The partial figure up to May 2013 shows an increase of more than 40% with respect to the previous year's period [6]. In 2017, the following imports were made: mainly from the United States (8955 t), followed by the Netherlands (8637 t), Germany (7692 t), New Zealand (6830 t), Argentina (5584 t), Mexico (1367 t), Uruguay (1257 t), Spain (1076 t), France (1040 t), Brazil (0.872 t) and other countries (1105 t), registering a total of 44,439 imported tons (**Figure 6**) [33].

### **3.2 Exports**

Worldwide, about 82% of exports of dairy products come from developed countries and it is expected that this rate will increase to 83% by 2026 [2]. In Chile, of the

**Figure 6.**  *Imports of cheese by country of origin. ODEPA 2017 [33].* 

### **Figure 7.**

*Chilean export of cheeses by destination country from 2004 to 2013 [27].* 

### **Figure 8.**

 total of dairy products exported between 2004 and 2005, Mexico bought over 60%. Between 2008 and 2010, exports to Mexico declined, and as of 2011 and 2012, exports and sales of dairy products were diversified. The importance of cheese in exports is even greater: between 2004 and 2010, 95% of the total exported cheese went to Mexico. In 2011, this share fell to 83.1%, as well as in 2012, and in 2013, fell to 75% of the total volume. At the same time, the volumes exported to Korea, Venezuela, Costa Rica, Guatemala and the United States increased. However, it must be recognized that Chilean cheese exports are still Mexico-dependent (**Figure 7**) [27].

Cheese exports by variety, according to PASO 2018 records during the January–August period, are as follows: Gouda cheese and Gouda type (3038 t), followed by Parmesan and Parmesan type (1013.1 t), Mozzarella (271.8 t), Edam and Edam type (110.6 t), and finally, other varieties or types, including sheep and goat cheeses (65.4 t) [33].

Cheese exports in 2017 were as follows: Mexico (3898 t), Russia (2512 t), South Korea (1061 t), China (886 t) and Peru (447 t) (**Figure 8**) [33].

## **4. Cheese consumption**

In recent years, according to a study conducted in 2016 by the consultancy Euromonitor, the cheese market in Chile has experienced a sustained increase,

### *Production, Processing, Commercialization and Analysis of Costumer Preferences of Sheep… DOI: http://dx.doi.org/10.5772/intechopen.83806*

reaching a total consumption of 201,000 t in 2016, which represents 34.4% growth in the last 5 years. During this same period, sales in value increased from US \$ 1449.6 million to US \$ 2378.9 million, which represents an increase of 64.1% [26].

 Currently, Chile is the largest per capita consumer of cheeses in Latin America, with an average of 11.1 kg per capita, a figure that represents an increase of 27.6% compared to 2011, during which consumption was 8.7 kg. Two countries with a strong dairy tradition follow: Argentina (7.5 kg) and Uruguay (5 kg). The same study indicates that Chile also leads the average expenditure per capita in this category, reaching US \$ 131.2 in 2016, a figure that represents a growth of 55.6% in relation to the US \$ 84.3 expense for the year 2011. At the second and third places are Argentina (US \$ 73.8) and Uruguay (\$ 65.9), respectively [26].

 During the last 5 years in Chile, there have been two important changes with respect to the cheese market. The first refers to consumer behavior patterns, which are demanding higher quality cheeses and a wider range of varieties. The second is related to the development of dairy agroindustries specialized in the production of goat cheese and, to a lesser extent, sheep cheese [6].

Chilean consumers prefer fresh and soft cheeses, and sheep and goat cheeses are generally considered to be gourmet products, with a higher price compared to cow's milk cheeses [33]. The FIA indicates that the consumer segment of sheep cheeses is very small but stable. The consumption and commercialization of sheep's cheese traditionally corresponds to consumers of foreign origin and niches determined as gourmet stores, hotels or restaurants, with a high influx from among the foreign public. Of these places, restaurants are where there is the highest consumption of sheep cheeses, by including this product in their dishes [30]. Another type of consumer is one with some type of intolerance to cow's milk; ovine products, being more digestible, represent an option for this niche of the population [6].

### **4.1 Expansion of the market and its relationship with the consumer**

 The Chilean population is mostly urban (87%), with around 40% residing in the metropolitan region around the capital, Santiago de Chile. This is the great center of Chilean consumption, from which the vast majority of importers and distributors from all over the country operate. It is also where most of the transforming industries are concentrated. It is a market in which a large number of international companies compete, so the buyer is used to comparing a wide range of products and assessing the technical information provided by the supplier. The Chilean consumer is also one of the most demanding exercisers of purchasing power in Latin America, particularly appreciative of the quality-price ratio of products [35].

Along with the increase in cheese consumption in Chile, there have also been changes in consumer expectations and the setting of a premium value for a certain product. The Chile gourmet study carried out by the consultants iCuadrado, Contexto and Whizzy, seeking to recognize the preferences and trends of the market, points out the appearance of a phenomenon of consumerization among the consumers of medium and high groups; among consumers of socioeconomic groups C1 and C2, aged 25 and over, 45% describe themselves as gourmet. Cheeses rank second in the list of products most perceived as gourmet by this consumer profile. Gourmet foods are characterized by high quality, craftsmanship and limited availability. Among the attributes that consumers value most are the outstanding flavor, the mixture of flavors, the quality of the ingredients and a higher price. The panel also included experts in gastronomy who pointed out that this consumer will opt in the medium term for authentic and natural foods, few ingredients and sustainable production [26].

For its part, the global cheese industry has taken over these trends through the phenomenon of granting a premium value to products, adding new ingredients and flavors, producing limited editions of certain products, preferring recipes and methods of traditional craftsmanship and highlighting specific localities of origin. A higher value and popularity of locally produced cheeses have been observed, with the cheeses that have "Designation of Origin" being very valued and value-added products [36]. Therefore, the implementation of a denomination of origin in sheep cheeses would offer potential for expansion in the Chilean market.

Other studies have focused on measuring consumer preferences through surveys in order to expand the market to the consumption of sheep's milk cheese. Within an analysis of potentials and limitations to evaluate the weak and strong points of the product in the Punta Arenas region, surveys and analyses of the cheese supply data were carried out by questioning potential purchasers of cheese such as hotels, restaurants and supermarkets. A test of consumers' preference according to the type of milk used in cheese preparation revealed that 55% preferred cow, 26% cow with goat, 3% prefer sheep's cheese, another 3% cow's cheese with sheep and the rest (13%) did not differentiate between one product and the other [30].

With regard to cheese from cows, 76% of respondents prefer it because it is the most demanded by customers and more used in preparations, 6% prefer it for being cheaper in comparison to cheeses of other species and the rest (18%) named both options in choosing the product. Among the brands most consumed by respondents, including Quillayes and Colun, are brands that offer more varieties of cheese (15 and 7, respectively); respondents agree that less-consumed brands are those that offer fewer varieties of product [30].

 The population of consumers was classified as 56% local and national population as the main consumers of cheese, while 11% indicate that it is foreign tourists who most want the product and 33% said it makes no difference. In terms of knowledge of the product, 16% indicate that they do not know about sheep's cheese, the remaining 84% are familiar with sheep's cheese, with the main reason for familiarization being current or past consumption (44%), because they use or sell the product (41%) or because they have heard it mentioned (15%). Regarding the brand, 34% of consumers are not aware of brands of sheep's cheese, while 66% do know about one, chiefly the brand Universidad de Magallanes (UMAG) (50%) followed by the brand Pére André, with 7%. The regional elaboration of such cheese represents for 90% of the respondents an added value to the product, indicating that they would prefer this cheese over others if it is elaborated in the region. The remaining 10% do not consider the origin of the cheese as an important reason when choosing. According to the prices collected in the market of gourmet cheeses similar to sheep's cheese, 57% of the sources state that they would buy the product at the suggested price. On the contrary, 33% said they would not buy it and the remaining 10% believe it unlikely [30].

Although there is no refusal on the part of the respondents in the Region of Magallanes and Chilean Antarctica to commercialize sheep's cheese in their respective establishments, the characteristics of that possibility differ between groups. For hotels and pubs, the possibility of purchase is associated with the market behavior of supply and demand of the product, where if there is demand, standardized processing characteristics and adequate sales prices, they would include the product in their assortment. Shops, supermarkets and restaurants would incorporate it immediately as they believe that there is a potential demand for sheep's cheese. However, when informed of the sale price at which it is marketed, the purchase percentages decrease, and the number of respondents that believe that a possible purchase is unlikely or null increases [30].

In another study conducted in the Province of Santiago in Chile, the behavioral response of the respondents was identified in which the processes of acquisition, use and possession of the product were analyzed. By means of questionnaires carried out in supermarkets, the data showed that the highest proportion of people *Production, Processing, Commercialization and Analysis of Costumer Preferences of Sheep… DOI: http://dx.doi.org/10.5772/intechopen.83806* 


### **Table 4.**

*Potentialities and limitations of sheep's cheese and its insertion in the Punta Arenas market [29].* 

surveyed turned out to be women (62%) between 20 and 25 years of age (34%). The purchases are made by 52% women and the most important aspects to consider the purchase are: brand and origin (70%) and price (30%). In terms of species, cheese of cow origin is the most consumed (77%), followed by goat cheese (6%), cow and goat cheese (15%) and those who consumed cow, goat and sheep cheese (2%). The main use of cheese is to make sandwiches (81%), indicating the need to find a more appropriate way to enter the cheese market of small ruminants—a more practical and habitual use [34].

### **4.2 Analysis of potentialities and limitations of sheep's cheese**

The aforementioned data establish an analysis of sheep cheese potentialities and limitations that indicate a broader perception of the product and its insertion in the Chilean market (**Table 4**). It is worth mentioning that the mere insertion of the product in the city is not enough; it should be known and generate interest in the consumer to bring the population closer to the demand side [30].
