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This article examines the dairy value chain in Southern Peru and identifies four critical success factors that can enhance the local situation.

The study employed descriptive research using semi-structured interviews with entrepreneurs from 17 cheese factories across eight districts, namely Azángaro, Ayaviri, Pucara, Lampa, Cabana, Acora, Pomata and Puno. Quantitative market data were also gathered and analyzed alongside qualitative views.

The study identified four critical issues: quality concerns in milk production, suboptimal managerial practices of cheese-processing plants, lack of compliance to regulations, particularly hygiene and environmental ones, and inadequate access to finance. The findings reveal a gap between the practices of the Puno region's dairy industry and world-class standards for cheese production. Urgent actions are required to improve product quality, increase access to finance, enhance managerial education and ensure compliance with regulations.

Results suggest critical issues to be prioritized, but the article does not propose how to solve the problems identified. External factors, such as economic changes, were also not considered. Interviews were conducted exclusively with cheese processing entrepreneurs, not milk producers.

This case study provides an insight into the interior of Peru, an under-researched region facing several development challenges. The findings have significant implications for dairy value chain stakeholders in Peru and other similar contexts.