Copper still king, but Chile diversifies China trade to tempt the palate
Print Edition
SOME would call it a perfect commercial match: Chile, the world’s biggest copper producer, and China, the biggest buyer of the metal. But bilateral trade is more than just ore. It’s blossoming into foods. China has become Chile’s largest trading partner since a free-trade agreement came into force in 2006, and both sides are seeking to expand bilateral ties.
“It’s amazing that one of every four shipments from Chile goes to China,” Diego Torres, head of the Asia and Oceania Department under Chile’s Ministry of Foreign Affairs, said in an interview with Shanghai Daily. “The free-trade agreement has been a cornerstone for our bilateral trade relationship. It has shown very promising results.”
Since the pact came into effect, Chilean exports to China have grown at an average 20.7 percent a year. China purchased some 25 percent of Chilean exports in 2013. Despite the robust growth, Torres said he believes the Chile-China trade relationship still has great potential to expand further.
“Copper products alone represent 79 percent of our exports to China,” he said. “That leaves a huge room for growth in non copper-related goods.”
Chile is seeking that diversity by expanding exports of food and beverages, especially farm products and seafood.
In 2013, China became the third-largest destination for Chilean food and drinks. Notably, Chile provides China with 98 percent of its blueberries, 58 percent of its apples and 50 percent of its fresh grapes.
Chilean wine is also catching on in China. Chile now ranks second among wine importers in China, where wine consumption is increasing rapidly.
A privileged geography contributes to Chile’s prosperous food industry. Stretching 4,300 kilometers from north to south, Chile lies in a narrow strip between the Andes and the Pacific Ocean, possessing a diversity of climates that allows production of a wide range of farm crops.
Chilean officials cite human resources as a major factor in the nation’s success.
“Through the years, we have developed generations of highly skilled people, ranging from engineers to business experts,” said Rafael Sabat, International Deputy Director of ProChile, the Trade Commission of Chile. “They have contributed to the creation of a service-oriented food industry chain that encompasses not only food production but also packaging, branding, marketing and logistics. They also have developed expertise in finding new markets.”
Due to Chile’s relatively small size compared with international food-exporting giants, Chilean exporters know how to spot and develop niche markets.
“Being small actually is our greatest advantage because it makes us very flexible in meeting customer demands,” said Juan Miguel Ovalle, president of ChilePork. “That’s the only way we can survive.”
ChilePork is a country brand that represents all export companies of Chilean pork in the Asian market. In 2011, Chile started to tap into China’s pork market, where it has been competing against larger exporters from Germany, Denmark, the US and Canada.
“Big producers usually have big production lines that can’t be easily changed to meet the specific requirements of different clients,” said Ovalle. “We don’t have massive production. We aim for niche markets with high value.”
Looking to build long-lasting relationships with clients, ChilePork exporters meet with their Chinese customers once a year to introduce improvements in the pork industry. This kind of personal service allows suppliers to better understand customers’ needs and provide tailor-made products.
At a time when Chinese are spooked by a series of domestic food-safety scandals, Chilean exporters reaffirm their commitment to quality products that Chinese customer can trust.
Food safety
All companies under the ChilePork umbrella operate under an integrated system of food-safety management, which includes a set of government-controlled programs covering quality monitoring and tracking systems that prevent and control possible contamination.
Similarly, the production of healthy, safe-to-eat products extends to Chile’s avocado industry, which aims to become a major supplier to China. Avocados, a popular food in Chile, are relatively new to Chinese palates. According to ProChile, the Chinese mainland imported only about US$2,374 worth of avocados in 2012, leaving a big potential market to fill.
“We have built up a distribution network in China after many years of experience in exporting grape and other fruits,” said Juan Enrique Lazo, general manager of Chile Avocado Committee. “Thus, everything is set for Chilean avocados to explore a new market,”
An avocado orchard operated by Desarrollo Agrario SA, a local fresh fruit company, shows the attention to detail and quality that the industry is banking on for more orders.
Before being crated, each fresh avocado goes through meticulous procedures of cleaning and sorting. An electronic classification system weighs and photographs 15 pictures of every avocado, sorting them according to levels of ripeness.
Chile now is in talks with Chinese authorities over market access for a variety of other foodstuffs, including walnuts and some livestock products, according to Chile’s Ministry of Agriculture.
“Chile has a huge diversity of products to offer,” said Agriculture Minister Carlos Furche.
Geographic distance is never a hurdle for the China-Chile relationship. Indeed, the split between hemispheres allows each country to supply the other with out-of-season foods.
“Chile is seeking to double its exports in the next 10 years, and China, a rapidly growing market, is absolutely a priority for us,” Furche said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
