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The power in the South

Possibly the greatest compliment paid to Chile was paid indirectly, by one of its southern hemisphere competitors, earlier this year.

South Africa’s wine industry competes with Chile’s in a number of markets, including bulk (cheap) and premium (expensive), and in terms of consumer perception it is about where Chile was 15-20 years ago: it’s mainly in the bulk market, but produces some excellent first-grade wines, and is anxious to move upmarket. However, one of the main wine players told IEG Vu that he was envious of Chile’s programme of signing Free Trade Agreements (FTAs) with anybody, absolutely anybody, with a single-mindedness that beggars belief.

One has the impression that if there was a settlement on the moon, Chile would be negotiating an FTA with it before long. This is one of the building blocks that Chile has put in place to ensure the success of its food and beverage industry (and other industries, to be fair, but F&B is the second largest after mining, and looks like overtaking it soon). Chile’s success should not be seen solely in the context of the skill of its trade negotiators and the willingness of alternating right-wing and left-wing governments to pursue this policy, without change. Chile has also invested hugely in the essential infrastructure and skills needed to make its food industry a world-class operation.

IEG Vu does not know what the industry’collective capital expenditure represents, but it must be colossal. Apart from constantly upgrading the factories and processing plants of its long-established products, such as frozen fruits and vegetables, wines and fruit juices, the country has established totally new food industries. Three decades ago, possibly less, there was no avocado industry at all in the country, and now avocados are not just exported in bulk but are an essential component of the Chilean diet. Similarly, an olive oil industry has been started from zero and its oils’ quality is already winning awards.

The world is now seeing another seismic shift in Chile’s approach to business. The country has embraced sustainability and is taking an early lead in corporate social responsibility (CSR). Not only that, but government-sponsored plans to establish completely renewable energy sources have resulted in colossal progress in the Atacama. Chile’s power has mostly come from hydroelectric plants anyway, but the solar energy initiative is something new, and (so far) little-known elsewhere in the world.

What we are seeing now is the emergence not just of a global food power, but a food power built on low emissions, sustainable farming, and completely renewable energy sources. That really is something new.

Download the full report on Chile below.

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Download the report for an in-depth analysis across fruit juices, frozen food, dried fruit and nuts, grapes and more. 

 

IEG Vu Chile | Agribusiness Intelligence

IEG Vu Channels

IEG Vu: Juice and beverages | Agribusiness Intelligence

IEG Vu - Beverages

Track prices, access trade and production data, and understand the latest changes in the beverages sector.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vu: Dairy | Agribusiness Intelligence

IEG Vu - Dairy

Get timely and reliable dairy industry news, underpinned by accurate price and production commodities data, to help you strengthen your position when negotiating procurement costs. Plan ahead using analysis of the changes driving the markets and the likely impact on your business.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vu | Agribusiness Intelligence

IEG Vu - Canned & Tomato Products

Track prices, access trade and production data, and understand the latest changes in the canned and tomato products sector.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vantage: Coffee | Agribusiness Intelligence

IEG Vu - Coffee

Track coffee industry developments as part of IEG Vu, the most comprehensive news service across all food markets.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vu: Grains | Agribusiness Intelligence

IEG Vu - Grains & Feed

Get timely and reliable grains and feed industry news, underpinned by accurate price and production commodities data, to help you strengthen your position when negotiating procurement costs. Plan ahead using analysis of the changes driving the markets and the likely impact on your business.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vu: Sugar | Agribusiness Intelligence

IEG Vu - Sugar

Get timely and reliable sugar industry news, underpinned by accurate price and production commodities data, to help you strengthen your position when negotiating procurement costs. Plan ahead using analysis of the changes driving the markets and the likely impact on your business.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
IEG Vantage: Cocoa | Agribusiness Intelligence

IEG Vu - Cocoa

Track prices, access trade and production data, and understand the latest changes in the cocoa sector.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
Dried Fruit and Nuts | Agribusiness Intelligence

IEG Vu - Dried Fruit & Nuts

Get timely and reliable dried fruit and nuts industry news, underpinned by accurate price and production commodities data, to help you strengthen your position when negotiating procurement costs. Plan ahead using analysis of the changes driving the markets and the likely impact on your business

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst
Frozen Foods | Agribusiness Intelligence

IEG Vu - Frozen Foods

Get timely and reliable frozen foods industry news, underpinned by accurate price and production commodities data, to help you strengthen your position when negotiating procurement costs. Plan ahead using analysis of the changes driving the markets and the likely impact on your business.

Key benefits:

  • Latest news
  • Compare production figures
  • Ask the Analyst

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