COALAR - Focusing on Opportunities in the Chilean Agriculture Sector

COALAR Board member Richard Warburton visited Chile in July to investigate opportunities to build commercial links, particularly in the agriculture sector.

COALAR (Council for Australia-Latin American Relations) Board member, Richard Warburton, visited Chile in early July as part of a wider visit to the sub-continent, with the purpose of investigating opportunities to build commercial links between Australia and Latin-America.

During a meeting with the Chilean Minister for Agriculture, Alvaro Rojas, the Minister noted that Chile had recently launched a five year plan to develop its livestock industry (particularly sheep and cattle). Chile was focusing on improving the genetic quality (and quantity) of its stock, and was looking to Australia, in particular, to obtain genetics.

In an interview in the agriculture supplement “Revista del Campo” which appears in the Monday edition of El Mercurio, Mr Warburton spoke about the complementarity of the two countries, “more than competitors, both countries are complementary. And precisely because of this, a free trade agreement could be beneficial as it would allow support in different moments and in important markets for both.”

Mr Warburton also said that Chile should consider using Australia as a platform for doing business in Asia. “Chile wants to grow in Asia, but it is too far from there. One of the ways that we can collaborate is precisely in how to confront this market. Chile can use Australia as a platform to grow in Asia. But also, it is possible to invest and establish production there, thinking of China or India. A Brazilian company, Friebo, for example, got together with an Australian company and they are raising livestock in Australia, as well as in Brazil, to export to Asia. Why can’t Chile do the same?”

Another area in which both countries could be complementary is in the wine sector, where Chile is a strong competitor and Australia has high level technology. Mr Warburton noted that Australian company, Fosters, was currently producing wine in Chile under the Lindeman’s global brand and underlined that there could be benefits in expanding production and investment in countries such as Chile.