This review contains information about the cultivation techniques, str
ategies, problems and new challenges faced as well as an economic anal
ysis of the income-producing capacity of Gracilaria farming, consideri
ng the variability of environmental systems where this alga is cultiva
ted in southern Chile. The development of Gracilaria farming in Chile
was made possible by an increased market demand, as well as the existe
nce of basic knowledge that permitted the management of wild stocks an
d the initiation of cultivation practices. Subtidal cultivation system
s appear to be more productive than intertidal systems and are less su
sceptible to wave action than intertidal cultivation areas. In relatio
n to farming practices, this difference implies that planting and harv
esting methods and strategies vary between habitats where cultivation
is being carried out on a commercial scale. Several problems such as t
he environmental impact of different cultivation methods adopted by th
e farmers, the management of contaminating organisms and strain select
ion appear to be important and new areas for future research. Finally,
an analysis of the income-producing capacity indicates that environme
ntal differences also have important consequences for the management s
trategies of Gracilaria cultivation.