This case study describes how the production of specialty cheese evolved in northern Peru, in a context of high competition and product imitation. It shows how the development of this cheese relied on individual and collective innovations in processing, marketing and organizational arrangements. The local cheese production system has been able to mobilize resources to protect the image of its product and to strengthen its market competitiveness. Mantecoso is a semi-fresh cheese produced by small dairies in the Department of Cajamarca. It is a typical cheese of this region - a local identity symbol. It has a strong reputation throughout the country, so might benefit markedly if it were registered as a geographical indication. Mantecoso cheese involves: - The use of specific local know-how in milk production and processing, and, - A cluster of many small firms, which cooperate in some aspects and compete in others. These firms are urged to develop better coordination to address common interests such as quality and market development.