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Under this context, milk quality management appears as a transversal component that formal dairy processors also have to deal with in order to satisfy the high demand of their consumers. Moreover, targeting high-valued markets such as urban supermarkets should push them to upgrade milk quality by implementing training and quality control programs, and organizing logistics such as better collection practices.

Improving milk quality depends also on stakeholders’ capacity to improve their management skills and on better coordination between them within the whole supply chain. Alternatives to improving milk quality in Mantaro valley may include strategies like (i) supporting the establishment of smallholder

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win-win scenarios for all the stakeholders. Although the involvement of the Peruvian State in the dairy sector is limited, local and national public institutions can also help : (i) promoting the involvement of the informal dairy sector in more integrated dairy supply chains, by helping informal producers in the differentiation of their dairy products or the promotion of the artisanal quality of the cheese they produce; (ii) providing incentives to the stakeholders in the formal sector in order to avoid their migration to a parallel sector; and (iii) promoting consumers’ concerns regarding food quality and sanitary issues by stressing the importance of buying nutritional and hygienic products. The use of a supporting tool adapted to the dairy production in this area and dedicated to strategic issues such as selecting the best portfolio and the design of alternative payment system, contributed to increase the prospective thinking of dairy processors to increase mid-term profits on one hand, and to encourage dairy farmers to improve their milk quality with the idea to get a better income on the other hand.

However, implementation will depend on a constant measurement of milk quality parameters and stakeholders’ capacity to innovate and create a transparent payment system in the area.

Despite the fact that the informal dairy sector has a structured supply of dairy products to informal markets, this sector remains sensitive to the State’s willingness to apply stricter quality regulations.

Moreover, the current lack of involvement of the informal sector in more added value supply chains makes informal processors dependent on general market demand which most of the time means lower prices and profits. Alternatives for this sector need to be better explored in future research in order to integrate them in a more resilient dairy production system.

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