Chile’s horticultural production will suffer if unfavourable exchange rates continue, according to Luis Schmidt, president of the country’s fruit growers’ association Fedefruta.
Schmidt, pictured on far right with Jaime Campos, Chile’s agriculture minister, told delegates celebrating Fedefruta’s 20th anniversary at its annual convention last week the low exchange rate with the US dollar could not be endured long-term. He said: “It is negative in terms of investment and employment for future industry.”
Schmidt claimed the recent free trade agreement with China was a positive step for the industry but Campos said the industry needed to take further action.
“It is not enough to rely on the free trade agreements. Because of the complexity of the terms of these agreements, in phytosanitary specifications, we need to do more in making Chile a synonym for quality fruit,” he said.
Both urged the industry to focus on post-harvest technology to maintain long-distance trade, as well as increasing transparency and information sharing between producers, exporters, ministers and researchers.
Innovation is key in setting Chile apart from its southern hemisphere competitors, Schmidt added.
To this end Fedefruta has invested in a business incubator for the sector, SABIO, in association with the University of Chile and the national agricultural association, SNA.
The incubator aims to provide financial and physical support for fledgling companies in launching projects of benefit to the whole industry.
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