Since the 1980s, the Chilean fruit industry has experienced dramatic growth due to the implementation of a successful internationalization strategy based on open and free tradei, as well as its comparative advantages – counter-season production, our mild Mediterranean-style climate, coupled with natural phytosanitary protection and high regulatory standards, which have made it one of the global leaders in the production and export of fresh fruit around the world.
Chile is not only producing high quality fruit that is in line with an international trend towards healthy eating, but also fruit of the type and condition to withstand ocean transport to the rest of the world.
As a result the Chilean fruit industry has gained global importance, especially in the sub-sectors of production of fresh non-tropical fruits (table grapes, apples, plums, peaches, avocados, kiwis, raspberries, cherries, etc), canned fruit, dehydrated fruits, wine and seeds.
Although the relative size of the Chilean market is small compared to other countries, it's many trade agreements open new markets around the world, making Chile an attractive investment platform in this industry.
Increasing Demand for the Finest Fruit
The Chilean Food and Drink exporting sector has gradually become one of the cornerstones of Chile's economic development, making up 16% of all exportations in 2011. The industry is valued at US$12.495 billion (FOB) in 2011, with fresh fruit and dried fruit composing 23% and 2%, respectively, of this total.ii
The main fruit export markets are United States (28%), Asia (28%), European Union (24%), South America (18%) and Africa (2%).iii
Notably, in the wake of the signing of the Free Trade Agreement with China, fruit exportations to China have increased eightfold in the last 5 years.iv
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As the world's largest consumer of fruits and vegetables, with a growing appetite for high quality produce, China is an expanding export market for Chile.
Notwithstanding the huge potential for growth in the exportations of fruit, Chile has a strong internal demand for fruit that will allow for sustainable production in all economic cycles.
Opportunities and Potential for Growth
Improving competitiveness is the major challenge for the Chilean fruit agribusiness. To meet the proposed challenge, there are opportunities for investment in different areas, such as:
Michael Grasty is a principal and founding partner of Grasty Quintana Majlis & Cía. www.gqmc.cl
His multinational background has allowed him to develop a successful professional career in the area of corporate law, advising national and international clients in diverse areas, such as agribusiness, energy, retail and international arbitration, among other. In relation to agribusiness, Michael has been involved in different projects, including Procarne, the first Chilean company that classified the quality of beef, Berries La Unión S.A., the company that introduced the production of berries in Southern Chile, B.P. Nutrition in their purchase of what today is the largest Chilean salmon producer, Bucalemu Berries, a local producer of berries and he is currently President of the Board of Directors of David del Curto S.A., one of the main Chilean fruit export companies.
Tel: 56-2-499 0403.