Cherry Boom Has Chile Predicting Record Agriculture Shipments
(Bloomberg) -- Fruit-exporting powerhouse Chile expects to register record agriculture shipments in the coming season on favorable weather and strong Asia-led demand.
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Chile — the biggest cherry exporter and a top shipper of blueberries and grapes — has had three years of normal rainfall after a prolonged drought and managed to contain plagues and avoid unseasonal downpours. Authorities have also struck deals to reduce barriers in China and Europe at a time when health-conscious consumers are pushing up demand.
“The outlook is very positive,” Agriculture Minister Esteban Valenzuela said in an interview Thursday. “The cherry boom is going to continue.”
He expects a 15% jump in total agriculture shipments for the season. Exports are set to exceed $7 billion for fruit, $12 billion for all farm products including wine and $20 billion when forestry is added in.
After sizable investments in irrigation and processing facilities, growing areas have expanded in the country, especially in the case of cherries. Groups from China, the biggest cherry buyer, are leasing and buying land in Chile, Valenzuela said.
Italian confectioner Ferrero, the maker of Nutella, has built a second hazelnut plant in Chile, while Portugal’s Sugal Group is developing a new tomato paste facility. Nestle SA and local group Agrosuper SA are also investing. Olive oil is another hot product attracting attention.
On the trade side, India is “very strategic for us,” Valenzuela said, citing that country’s appetite for Chilean walnuts despite high tariffs.
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