Agriculture and Water Resources – Business Opportunities in Chile

In the midst of its worst drought in history, Chile is looking for the latest technologies to improve water use efficiency. Farmers are looking to incorporate best practices and high-end technology in their production processes. The country is an excellent market for the latest and most innovative irrigation technology, as well as use and preservation of existing water resources.  

• Chile is highly vulnerable to impacts of climate change, with large portions of land suffering desertification and a severe drought.  
• The limitation of soil and water available require adjustments to improve efficiency of production processes, and of the use, care and storage of natural resources including water used in agriculture.  
• Chile has a modern agriculture industry and is among the top ten agricultural exporters in the world.
• Chile’s main agricultural exports are wine, fresh fruit, dairy, meat and fishery products.
• The country has comparative advantages in agricultural, livestock and forestry production because of the diversity of climates, the exceptional natural sanitary conditions and high standards of quality and safety.
• Because of Chile’s location in the southern hemisphere, its agricultural production is counter-season for the main consumer markets. In addition, the high quality and professionalism of farmers of all sizes and the extensive network of trade agreements, among them the FTA with the U.S. signed in 2004, allows preferential access of Chilean products to approximately 86% of global GDP and 64% of the world’s consumers.
• Chilean consumers, as well as those in countries that import Chilean products, increasingly look for ‘green production’, healthy and environmentally friendly produced food.
• The country’s goal is to achieve a circular agriculture system by incorporating the highest standards of agriculture processes, consumption, waste management, including recycling and re-use of resources. High labor and energy costs pose challenges to local the agriculture, agroindustry, and food processing industries, all of which present opportunities for U.S. machinery, equipment, services and supplies.

The Chile/U.S. free trade agreement provides duty free entrance for machinery, equipment, and supplies exported from the U.S. One of the most critical problems that Chile’s agriculture faces is the current drought, the worst in the history of the country. Fruit producers are already reporting yield decrease by 30% – 50% depending on the region of production. Both the government and private sector are seeking ways to obtain and preserve water, such as dam concessions, underground water reservoirs, desalination plants, and waterways. There are three projects to transport water from the rainy Biobío Region to Central and Northern Chile.

Learn about upcoming business opportunities in the sector, understand the latest developments in the environment, and learn about tools and resources to support your company’s market entry to Chile directly from the experts!