A new dairy firm - Surlat Industrial - officially takes form this week as a result of a partnership between Chilean dairy cooperative Lacteos Surlat and Iparlat. The two companies will have equal control over the new venture. Roth explained that cooperatives like Lacteos Surlat must form alliances with large companies like Iparlat to best compete with large dairy processing corporations that control prices in Chile's market.

Lacteos Industrial's activities will cover the full spectrum of dairy production and will be destined for the consumer market, thus eliminating the need to sell dairy processors.

By Steve Anderson, just-food.com correspondent