Fundo los Ulmos: a crossroad in the Chilean milk industry

Abstract

The case introduces the reader to a problem of a family business in the milk industry, Fundo Los Ulmos (FLU), which had to choose the best option between the two main alternatives available. One of the options was to sell all the land of the family business that has an emotional root with the decision maker. Instead, the second option was to perform an operational analysis that will improve dairy management based on a milk production optimization model. This case shows a typical family business problem where the decision maker must deal with decisions that mix analytical and socioemotional aspects. This case is especially relevant for a competitive strategy course in Latin American family businesses.