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The Chile Food Drink Report Provides Independent Forecasts and Competitive Intelligence on Chiles Food and Drink Industry

Posted on: Friday, 14 March 2008, 12:00 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c85960) has announced the addition of "Chile Food & Drink Report Q1 2008" to their offering.

Food exports account for a significant share of Chile's total exports -- estimated at 22% in 2006, making it the country's second-largest export sector -- and the sector has gone from strength to strength over recent years.

Its strong position is based on Chile's rich natural resources and its diversity of environmental and climatic conditions. Consequently a variety of sectors, including annual crops, cattle ranching, dairy farming, vegetable production and organic farming, contribute to the strong food export position. In terms of product types, fresh fruits account for around 25% of food exports, followed by cultivated salmon (23%), processed foods (15%), other sea food (12%), wine (12%), meat (7%) and other food products (8%). According to the Food and Agricultural Organisation of the United Nations (FAO), Chile's food exports have increased at an average annual rate of 10% over the last decade, making it one of the fastest growing food exporting countries worldwide.

Favourable environmental and climatic conditions are, however, not the only reason for Chile's strong position. The country also benefits from a growing and comparatively stable economy and a strong commitment to free trade. Thus a large number of free trade agreements (FTAs), as well as Chile's unilateral liberalisation of its trade tariffs, are facilitating export sales. The country has a flat tariff of 6% without discrimination but, as a consequence of the FTAs in place, the effective average trade tariff is just 1.5%.

Free trade agreements are in place with Bolivia, Brunei, Canada, Central America, China, Colombia, Cuba, Ecuador, the European Free Trade Association (EFTA), the European Union (EU), the Southern Common Market (MERCOSUR), India, Japan, Mexico, New Zealand, Panama, Peru, Singapore, South Korea, the US, and Venezuela. The FTA with the US was established in 2004 and has led to a 150% increase in bilateral trade between the two countries during the first three years of the agreement.

Last, but not least, Chile's highly-developed food processing industry also is a strong contributor to the country's strong position where food exports are concerned. The industry, in 2006, represented around 25% of GDP, with the strongest sectors having been fruits, salmon, wines, processed foods, meats and other marine products.

The sector employs more than 1mn people, which represents around 20% of Chile's economically active population. By 2030, the food processing sector is forecast to account for around 35% of Chile's GDP, and food exports are thus set to growth further, providing a bright outlook for the industry.

Companies Mentioned:

- Bunge Ltd

- Cencosud SA

- Companhia Cervecerias Unidas (CCU)

- Concha y Toro

- Distribución y Servicio (D&S)

- Embotelladora Andina SA

- Empresas Carozzi

- Grupo Bimbo

- Nestlé Chile SA

- SACI Falabella

- Soprole

For more information, visit http://www.researchandmarkets.com/reports/c85960

Source: Business Wire

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