Chile's Agricultural Business to Grow Fast

Driven by strong demand for its fruits, Chile will embrace a rosy prospect of its crop protection market, as it has concluded more and more agricultural trade agreements with other countries, according to CCM International’s July issue of South America Crop Protection Monthly Report.

  

At the end of June 2012, both Chile and South Korea claimed that they have signed a trade agreement for blueberry. According to the agreement, Chilean blueberry will have the chance to be exported to South Korea from July 15, 2012. Nearly at the same time, China agreed to double the trade with Chile to USD60 billion by 2015, including export deals for produces. All these facts are an indication of the agricultural boost in Chile in the near future.  

 

Produces especially the fruits from Chile are attractive around the world thanks to its strict agricultural standard in South America. Its fresh and processed agricultural produces are certified by Good Agriculture Practices (GAP). All the inputs used must be approved by official authorities, which has obligated use of only agrochemical with specific recommendations for each crop. These must be specified on the product's label. Through its policies, Chile dedicates itself to supplying produces which meet international food safety standards, so as to protect consumers and the environment.

 

Recently, fruit exporting business is the third exporting business in Chile. The total export value of fruit has been up to USD4.9 billion in 2011 from USD3.2 billion in 2007. Wherein, the grape exporting business accounts for the main part of the fruit exporting business, which valued at USD1.5 billion in 2011. Indeed, the grape planting area in Chile has been increasing gradually as the exporting demand of grape improves.

Pesticides in Chile are mainly formulations imported from other countries. The historical import data of pesticide can show the rising trend of Chilean pesticide market, with pesticide import value following fruit export value dynamic in the past years. Take the year of 2009 as a typical example, because of the outbreak of the worldwide economic crisis, global demand for fruits was inevitably weakened. Therefore, the fruit export value of Chile declined sharply in 2009, and pesticide import value was falling in response. Among different pesticide varieties, fungicides will be in the spotlight in Chilean agrochemical industry thanks to the increasing demand for fruit in Chile, as it can be widely used in fruit planting, storage and transporting.

 

In Chile, low import taxes caused the increasing import volume of pesticides from other countries such as China. There are a few formulations from local manufacturers, as it is difficult to compete with other countries that have free trade agreements with Chile. Therefore, most of the imported pesticides are finished products, with a small proportion of active ingredients. There is only one main local formulation manufacturer, which has very modern facilities and also manufactures for export. Some local formulation manufacturers focus on manufacturing basically sulfur-based dust and WP formulations, as well as cupric pesticides. As the export demand for Chilean produce increases, there will be the coexistence of opportunity and crisis for the local pesticide manufacturers in the near future.

Besides, Chilean agricultural planting development will also become the grow engine in its crop protection market.

Now Chile has focused its efforts on becoming a specialties market, with a broad agricultural variety allowed by its fortunate geography and climate. Currently, Chile not only does the research on new possibilities in crops, or fruit which may be historically unusual, but also tries its best to increase its yield and production through the planting technology.

Source: South America Crop Protection Monthly Report 1207

http://www.cnchemicals.com/Newsletter/NewsletterDetail_256.html

Content of South America Crop Protection Monthly Report 1207:

Chile and South Korea sign agreement for blueberry

Argentina to allow 6 million tonnes of wheat for export in 2012/13

Trade agreement between China and Argentina to benefit pesticide industry

Rainy weather affects sugarcane harvest in South-Central Brazil

Chile's agricultural business to grow fast

Crop planting in South America boosts pesticide consumption

Venezuelan farmers face difficulties in gaining urea

Brazilian corn harvest to get good result in 2012

Brazil extends deadline for pesticide technical review

Monsanto fails to complete GM cotton registration in Paraguay

… …

South America Crop Protection Monthly Report, a monthly publication issued by CCM International on 30th(31st) of every month, brings you the latest information on new company dynamics, new policies, new market trends, new technology, International trade in the South America crop protection market.

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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1161.html