I International Investment Forum:CORFO announces fruit and agribusiness project portfolio for US$ 116 millionPublished: December 15, 2008
The First International Forum for the Promotion of Business Opportunities for the fruit and agribusiness sector will add an estimated US$ 40 million in investment projects to the announced portfolio.
Under the First International Forum on Fruit Agribusiness Investment, conducted last November in Santiago and regions, CORFO issued a current investment portfolio, associated to the sector, of US$ 116 million in projects under implementation. Of these, US$ 30 million has already been achieved recently. The Institution believes that after this business meeting among domestic and foreign entrepreneurs, US$ 40 million in new initiatives will be added.
Of the announced portfolio, 56% are targeted investments, primarily in Coquimbo, Valparaiso, O'Higgins, Maule, Biobío, La Araucania, Los Rios, Los Lagos and Aysen. Because of their great potential for fruit and agriculture, these regions have generated significant interest from investors invited to the forum, thus becoming headquarters for much of the agendas and bilateral meetings in which participation of local counterparts is expected. The aim of this meeting is to create a space for business exchange, in order to identify new trends, developments and explore new business niches, as well as to meet strategic partners associated with the industry.
The inauguration ceremony was attended by CORFO's executive vice- president (CEO), Carlos Alvarez; ChileAlimentos general manager, Guillermo Gonzalez; ASOEX president, Ronald Bown, and the president of FEDEFRUTA, Rodrigo Echeverria, among other public and private authorities.
Also, the International Investment Forum brought together around 40 foreign companies from the U.S., Italy, Spain, Canada, New Zealand, Denmark and Switzerland. This event was under the Food Cluster, which seeks to promote the development of the agribusiness sector, mainly with a focus on the processing and ancillary industries, aiming to turn Chile into a force for agrifood.
"Chilean fruit exports have doubled in the last 8 years, surpassing US$ 2,700 million in 2007, with a high market diversification. This positive evolution is not only a product of our economic growth, but also the result of work done by the various sector agents both in the public and private spheres. These have managed to exploit the natural comparative advantages of Chile for agro-industrial quality", expresses CORFO executive vice- president (CEO), Carlos Alvarez.
Among the international participants were: cranberry producer Atoka, from Canada; U.S. avocado processing giant CALAVO, and King Fresh Produce, also from the U.S., dedicated to the production and export of table grapes; Facma, machinery manufacturer for mechanized nut harvesting from Italy; N. Ørskov Christensen, producer and processor of fruits and derivatives from Denmark, and the New Zealand Institute for Crop and Food Research, engaged in research and seed reproduction, among many others.
In order to strengthen Chile's profile as a food producer, the goal is to climb from 17th place to 10th place in the world's major food exporting nations ranking. In this challenge, fruit is one of the best cards, both fresh fruit as well as in the agro-industrial sub-sectors that have gained increasing international significance. Among these are frozen, dried, and canned fruits and seeds.
"Chile is a privileged country because of its Mediterranean climate and associated crops. Its fruit and vegetable production is very highly regarded worldwide and its development is a priority for Chile's growth. That is why we are working on a 10 year term agenda, to surpass US$ 3 billion in exports", says Guillermo Gonzalez, general manager of ChileAlimentos.
Investment opportunitiesInvestment niches being explored by foreign financiers, and in which Chile exhibits a high business potential are, in the agricultural area: nuts, berries, avocados and cherry plantations, and other emerging varieties; fruit nurseries for emerging varieties. The industrial sector includes: pulp processing plants; frozen, canned, dehydrated fruits; juices and concentrates, processed foods and plants of high added value processed food (fruit pastes, baby food, etc.). Finally, the auxiliary area of this item includes: packaging and container enterprises; specialized providers of advanced services (testing laboratories, agricultural engineering, specialized computer science); agrochemicals producers (fertilizers, protective elements for applications); cold chain services (frozen and packing); mechanized harvesting and work automation services, and companies that supply components for biological production (pollinating insects, pheromones, pest control, etc.).
"Chile is a country open to the world that requires not only information but also innovation and creativity to enhance its attributes and be part of this tremendously competitive world of today. In the 70s our exports were no more than US$ 15 million; in the 80s, no more than 261 tonnes. Today, our estimates for the coming season surpass the 2 million tonnes and more than US$ 2,500 million in fresh fruit exports", adds Ronald Bown, president of ASOEX.
It is noteworthy that CORFO, through its Transversal Program of Agribusiness Fruit Investment, promotes specialization and diversification of the sector through various support lines including: information services (country, region, sector); assistance at the different stages of the project cycle, access to business networks and public services, search for investment partners, facilitation of access to financing sources; financial incentives for the realization of the investment, among others.