agriculture

The Chilean-Indonesian Chamber of Commerce and Culture has been closely monitoring the economic developments in Chile. Several key sectors have shown promising growth and potential, which we believe are noteworthy.

OCDE's Economic Forecast

Adolfo Rodríguez-Vargas, the chief economist for Chile at the Organisation for Economic Cooperation and Development (OECD), has expressed confidence in Chile's export strength. The OECD has adjusted its projections for the Chilean economy, estimating a 2.4% expansion of the Gross Domestic Product (GDP) this year. However, it has also revised its forecasts for 2025 down from 2.5% in May to 2.3%. The changes for this year are due to an upward revision of the expansion of exports and a decrease in imports, while the recomposition of domestic demand would contribute slightly less to activity.

Chile's Third Industry: Aquaculture and Agriculture

The II Symposium "Sciences and Footprints of Agriculture", organized by the Doctorate in Agricultural Sciences of the Catholic University of Chile (UC) with the support of Salmones Antártica, highlighted the potential of creating a third industry in Chile combining aquaculture and agriculture. This initiative is backed by the Technological Program for the Local Production of Nutritional Inputs for Aquaculture (PTEC-INVA), a public-private and academic initiative promoted by the Corporation for the Promotion of Production (Corfo).

Geopolitics, Environmental Regulations, and Mineral Exports

Geopolitics and environmental regulations could potentially impact the exports of minerals from the region. Tanvi Sharma, Senior Research Analyst - Bulk Research, Drewry, highlighted this during the "Shipping Seminar 2024". The market behavior of various commodities relevant to our region, including iron ore and coal, is determined by a complex interplay of causes and effects.

Salmon Exports

ProChile has promising projections for the export of salmon. The Enexpro Sea Products 2024, an initiative that allowed 60 Chilean companies from Coquimbo to Punta Arenas to present themselves, was developed in Puerto Varas.

Corporate Tax Rate Reduction Proposal

The Chilean government's proposal to reduce the corporate tax rate to 25% is a bold strategy to stimulate economic growth and attract foreign direct investment (FDI). However, this measure has also sparked substantial debates about its fiscal, social, and economic impact, necessitating a balanced analysis of the benefits and risks.

Boom in Cherry Exports

There is a significant boom in the export of cherries from Chile to Asia. This surge in demand underlines the potential of Chile's agricultural exports and the opportunities it presents for foreign traders and investors.

• Adolfo Rodríguez-Vargas, economista OCDE: “Las exportaciones van a mantenerse fuertes. El asunto es cuán sólida sea la demanda externa por los minerales que vende Chile” | Diario Financiero (Df.cl)
• Acuicultura más agricultura: La gran oportunidad de crear una tercera industria en Chile - AQUA (Aqua.cl)
• ¿Cómo la geopolítica y las normativas ambientales podrían afectar a las exportaciones de minerales de la región? - MundoMaritimo (Mundomaritimo.cl)
• Las promisorias proyecciones de ProChile para las exportaciones de salmón (Salmonexpert.cl)
• Evaluación de Propuesta de Reducción de la Tasa Impositiva Corporativa al 25% en Chile | Diario El Pulso desde O'Higgins para Chile y el mundo (Diarioelpulso.cl)
• [VIDEO] Boom por las cerezas chilenas: conoce el significado detrás del furor en China por cargamentos (Soychile.cl)

This week, a series of significant events have occurred in the commercial and cultural sectors of Chile and Indonesia, highlighting the strengthening ties between the two countries.

The Zhejiang Huayou Cobalt company is mobilizing a significant investment in Indonesia for a nickel processing plant, backed by Ford Motor. This project represents a critical step in the supply of battery-grade nickel, vital for the electric vehicle market.

Chile is making progress in becoming the first country to open the South Korean market to fresh plums. The Agricultural Livestock Service (SAG) and Fruits of Chile have achieved advances for the opening of the South Korean market. This progress includes a technical public-private delegation making strides in the analysis of cold treatment in transit for Chilean fruit exports and electronic certification.

Japan is emerging as the premium market in Asia for Chilean salmon and trout exports, according to data provided by the National Customs Service's Department of Studies.

Chile and Vietnam have signed agreements on agriculture, defense, culture, and export promotion. These agreements further strengthen Chile's international relations and open new avenues for trade and cultural exchange.

In a significant event held in Beijing, China and Indonesia have signed agreements worth $10 billion, mainly focusing on key sectors such as green energy and technology. This Indonesia-China Business Forum marks a new chapter in the strategic relations between the two nations.

With the beginning of the fruit export season in Chile, the refrigerated container (reefer) market is experiencing a significant increase in rates, driven mainly by growing demand and equipment shortage. External factors, such as port congestion in Asia and strikes in the United States, are creating a domino effect that goes far beyond Chilean borders.

Due to better freight prices in Chile, shipping companies are prioritizing their resources there, reducing the availability of reefers in neighboring countries such as Peru and Ecuador. Chile is one of the main fruit exporters in the southern hemisphere, especially perishable products like cherries, blueberries, and grapes. These products require transportation under controlled refrigeration conditions to ensure their freshness in destination markets, particularly in North America and Asia.

• Importante proyecto de inversión en Indonesia respaldado por compañías automotrices clave (Redimin.cl)
• Chile avanza en ser el primer país en lograr apertura del mercado coreano para ciruelas frescas - PortalPortuario (Portalportuario.cl)
• Japón se alza como el mercado premium de Asia para el salmón chileno (Salmonexpert.cl)
• Chile y Vietnam firman acuerdos en materia agrícola, defensa, cultura y promoción de las exportaciones (Radiopaulina.cl)
• Acuerdos Bilaterales: China e Indonesia firman tratos multimillonarios en tecnología verde (Redimin.cl)
• Temporada Sudamericana de envíos de frutas: Escasez de contenedores refrigerados y alza de tarifas – Simfruit (Simfruit.cl)

The Chilean-Indonesian Chamber of Commerce and Culture is pleased to bring you the latest updates in the world of commerce and culture between Chile and Indonesia. We have curated the most relevant news items to provide a comprehensive overview of the week's events.

Francisco Lecaros, president of the Mining Foundation of Chile, emphasizes that Chile should not only export minerals but also mining knowledge. The Foundation has launched a massive campaign to educate a million people about the importance of mining in their daily lives, offering educational games, maps, and brochures.

India emerges as one of the most dynamic markets for Chilean fruit exports, with a 53% increase in the first seven months of this year compared to the same period last year. India is now the fastest-growing market among the top 15 destinations for Chilean exports, according to data from the National Customs Service.

Despite the positive results of agricultural exports, other indicators such as production levels, poverty rates in rural areas, and economic and social inequalities in family farming need to be considered for a comprehensive diagnosis of the national agrarian situation. According to the Central Bank data, the exports from the agricultural, forestry, and fishing sector reached $5.601 billion in the first half of this year, a more than 10% increase from last year.

Chile remains the leading lithium producer in South America and second in the world, behind Australia. In 2023, national production reached 270,947 tons of lithium carbonate equivalent, a 4.3% increase from 2022 and a 120.5% increase from 2020. Production is projected to reach 275,000 and 285,000 tons in 2024 and 2025, respectively.

The price of farmed Atlantic salmon from Norway has fallen by 14% since June 2006, but the amounts achieved in August still far exceed those of 2005. Similarly, Chilean salmonids are experiencing a similar situation. The high prices in Europe and Japan have diverted national exports from their traditional market, the United States.

The Chilean Foreign Minister, Alberto van Klaveren, met with the Indian Ambassador to Chile, Abhilasha Joshi, to discuss the upcoming Chile Summit India 2024. This public-private event, organized by ProChile, aims to seek new opportunities in the Asian sector and strengthen ties between the two nations in terms of trade cooperation and initiatives to facilitate the exchange of goods and services.

• Francisco Lecaros, presidente Fundación Minera: “Chile no solo debe exportar minerales, sino que también minería” - NOSTÁLGICA CL (Nostalgica.cl)
• India se ubica como uno de los mercados más dinámicos para las exportaciones frutícolas chilenas – Simfruit (Simfruit.cl)
• Exportaciones y políticas agrícolas – El Clarin de Chile (Elclarin.cl)
• Chile sigue liderando la producción de litio en Sudamérica a la vez que cae valor de las exportaciones – Diario Chañarcillo (Chanarcillo.cl)
• Comercialización de salmónidos continua al alza - AQUA (Aqua.cl)
• Canciller se reúne con embajadora de la India previo al Chile Summit India 2024 - Minrel (Minrel.gob.cl)

The Indonesian-Chilean Chamber of Commerce and Culture presents a summary of the week's economic developments, highlighting the fluctuations in exports, growth in key markets, and the potential for increased cooperation between Indonesia and Chile.

In the Arica and Parinacota region, the total exports registered in June 2024 amounted to $23.8 million, representing a negative variation of 15.4% compared to the same period of the previous year, according to the National Institute of Statistics. The sectors with the most significant participation were Industry, representing 73.9% with an interannual contraction of 25.5%, and Mining, which reached 23.0% of the total exported, with a twelve-month growth of 27.0%.

On a brighter note, the Valparaíso region witnessed an interannual variation of 31.8% in its exports in June 2024, totaling $490.3 million. The Mining sector led the way with a 67.2% participation, followed by the Industry sector with a 25.3% participation, primarily due to declines in Oil Refinery and Derivative Products activities.

Chilean exports grew by 1.4% in the first semester of 2024, with fruits and wines standing out in key markets such as the United States, Europe, and Brazil. This growth reflects the dynamism of shipments to the main international markets, emphasizing the need to reinforce service exports, expand the product portfolio, and pay special attention to items such as lithium, grapes, and wines.

However, a decline in salmon production negatively impacted exports, with a negative variation of 22.5% compared to the same month of the previous year. Despite the increase in shipments of meat, wool, hake, king crab, and sea urchins, the regional salmon farming industry experienced a significant downturn.

In Indonesia, PT Pupuk Indonesia (Persero) is increasing its contribution to societal welfare through the agricultural sector. The company implemented the Tajumase (Tani Maju Makmur Sejahtera) program in two villages, including Hadakewa Vowong in Lembata Regency, East Nusa Tenggara (NTT).

Finally, Indonesia, the fastest-growing economy in Southeast Asia, is inviting Chilean companies to invest and diversify their businesses with high-quality products and services at competitive prices.

• Arica y Parinacota: Exportaciones decrecen 15,4% en doce meses - PortalPortuario (Portalportuario.cl)
• Exportaciones de la Región de Valparaíso presentan variación interanual de 31,8% en junio de 2024 - PortalPortuario (Portalportuario.cl)
• Agregados comerciales de Chile trazan su camino tras un semestre con cuentas a favor » DUPLOS.CL (Duplos.cl)
• Cómo los fertilizantes indonesios maximizan el potencial agrícola en las zonas costeras de NTT - Natura Hoy (Naturahoy.com)
• Baja en la producción de salmones fue el principal factor que jugó en contra de las exportaciones | La Prensa Austral (Laprensaaustral.cl)
• Indonesia invita a empresas en Chile (Elproa.cl)

September has been a significant month for both Chilean and Indonesian business and commerce, with a series of noteworthy events and achievements that have taken place in both countries.

In Chile, the Agriculture and Livestock Service of Biobío (SAG Biobío) held a meeting with representatives of blueberry exporting plants, reinforcing the country's commitment to agricultural exports. Additionally, the National Customs Service's Chemical Laboratory has recently achieved accreditation in the area of lithium products, a first in Chile. This accreditation, granted by the National Institute of Standardization (INN), strengthens the supervisory capacities of non-metallic mining exports.

Chile's foreign trade marked a new milestone this month, accumulating shipments valued at US$ 41.392 billion between January and mid-September, the highest level in history. This surpasses the previous record of US$ 40.573.9 billion totalized in 2005. The significant increase in copper prices, which have averaged US$ 2.98 per pound on the London Metal Exchange so far this year, largely contributed to this achievement.

Meanwhile, in Indonesia, the East Java Multipurpose Terminal (EJMT), a business unit of International Container Terminal Services, Inc. (ICTSI) in Lamongan Regency, received two new post-Panamax mobile harbor cranes ESP.8 from Konecranes Gottwald. The new equipment will assist EJMT in handling bulk, project, and container cargo once the terminal begins operations in September.

Lastly, the General Director of ProChile has invited participation in the Silvoagricultural Contest 2025. This initiative is in line with the economic trends in the Chilean agricultural market, which must adapt to the challenges posed by climate change to maintain its position on the global stage. With its unique climatic conditions and rich agricultural heritage, Chile is one of the world's leading exporters of various products.

• SAG Biobío se reunió con representantes de plantas exportadoras de arándanos | La Tribuna (Latribuna.cl)
• Chile: Laboratorio Químico de Aduanas alcanza acreditación en área de productos de litio - PortalPortuario (Portalportuario.cl)
• Indonesia: East Java Multipurpose Terminal recibe nuevas grúas post-Panamax - PortalPortuario (Portalportuario.cl)
• Director General de ProChile invita a participar en Concurso Silvoagropecuario 2025 (Prochile.gob.cl)
• Exportaciones alcanzan el nivel más alto de la historia - AQUA (Aqua.cl)
• Tendencias económicas en el mercado agrícola chileno (Portalmetropolitano.cl)

This week, the Chile-Indonesia Commerce and Culture Chamber brings you the latest news from the Chilean economic and cultural sector.

Economic Trends in Chile's Agricultural Market
Chile, with its unique climatic conditions and rich agricultural heritage, remains a leading global exporter of various products. Amid global competition and climate change challenges, the country is strategically positioning its agricultural sector to maintain its global standing. Economic trends and influencing factors in the Chilean market continue to evolve.

Chile's Commercial Attachés Define Tasks After a Favorable First Semester
Commercial attachés of ProChile in the United States, Brazil, Asia, and Europe have outlined their export promotion strategies for the second semester. The value of products and services exported from Chile increased by 1.4% in the first half of the year, reaching US$ 49.466 billion. Opportunities for Chilean companies providing technology and services for mining, as well as Edtech, HealthTech, and Fintech sectors, were highlighted.

Chile and Mexico Celebrate 25 Years of Free Trade Agreement (FTA)
Chile and Mexico are celebrating 25 years of their Free Trade Agreement (FTA), which has significantly increased bilateral trade and recently modernized to include Gender and SMEs chapters. The FTA has been a strategic tool for regional integration, development, and a source of opportunities for both countries.

Chilean Salmon to Participate in Promotional Event in India
From August 27 to 30, a public and private sector delegation will participate in the Chile Summit India 2024 in New Delhi and Mumbai. The event aims to strengthen institutional ties between Chile and India and identify opportunities for commercial cooperation.

Indonesian Gamelan Music Ensemble Impresses Audience in Santiago
The Indonesian Gamelan music ensemble left a lasting impression on the audience at the La Cúpula Theater in Santiago, further strengthening cultural ties between Chile and Indonesia.

Chile Must Industrialize its Brines
Chile is at a point where it needs to explore and exploit more minerals, including lithium. However, the current Mining Code, designed for solid rock mining, does not cover brine mining, leaving a legal vacuum. The country needs clear regulations and public policies to truly promote and develop the lithium industry.

• Tendencias económicas en el mercado agrícola chileno (Portalmetropolitano.cl)
• Destacado en prensa: agregada/os comerciales de Chile definen sus tareas tras un primer semestre con cuentas a favor (Prochile.gob.cl)
• Chile y México celebran 25 años del Acuerdo de Libre Comercio (ALC) – Simfruit (Simfruit.cl)
• Lanzan el primer evento de promoción dentro de India donde participará el salmón chileno (Salmonexpert.cl)
• Conjunto Musical Indonesio Gameln Impresion Al Pblico En El Teatro La Cpula - EMBAJADA DE LA REPÚBLICA DE INDONESIA , EN SANTIAGO,, REPÚBLICA DE CHILE (Kemlu.go.id)
• Chile debe industrializar sus salmueras - Portal Innova (Portalinnova.cl)

The Chilean Chamber of Commerce and Culture has witnessed a significant increase in various sectors of the nation's exports, particularly in the agricultural, forestry, and aquaculture sectors, as well as in Tarapacá's mineral exports.

The agricultural sector experienced a surge of 8.8% in the first half of the year, with exports totaling US$7.053 billion, representing 31.3% of total foreign sales. This growth is driven by record exports of cherries, plums, and blueberries.

The forestry sector also showed positive performance, with exports reaching US$2.448,8 billion FOB between January and May 2024, a 3.0% increase compared to the same period last year. However, May witnessed a decrease in exports by 23.1% compared to the previous month.

The aquaculture sector continues to demonstrate its importance in the national economy, with salmon leading the exports. The peak export period is between March and September, with two companies managing 80% of the exported tonnage.

Tarapacá's exports reached US$469 million in May 2024, with significant interest shown in developing 24 lithium projects in the region's deposits and salt flats.

Kiwi exports are expected to increase by 10% compared to the previous season, with more than 65% progress in the current season and an estimated volume surpassing last year's total of 126,220 tons.

Meanwhile, in Indonesia, the first Damen CSD600 series cutter suction dredger has begun operations. Named Jhoni 58, it is currently working on a maintenance dredging project at the Port of Batulicin in Kalimantan, primarily used by numerous coal transport barges.

• Las ciruelas y los arándanos se suben al carro de exportaciones récord que lideran las cerezas | Diario Financiero (Df.cl)
• Exportaciones forestales chilenas acumulan desempeño positivo - PortalPortuario (Portalportuario.cl)
• Sector acuícola chileno: El salmón lidera ventas y demanda en Brasil y Estados Unidos - Radio Agricultura (Radioagricultura.cl)
• Exportaciones de Tarapacá alcanzaron los US$469 millones en mayo de 2024 (Radiopaulina.cl)
• Exportaciones de kiwi podrían incrementarse en un 10% en comparación con la temporada anterior - Mundoagro (Mundoagro.cl)
• Indonesia pone en operación la primera draga de la serie Damen CSD600 - PortalPortuario (Portalportuario.cl)

The Indonesian-Chilean Chamber of Commerce and Culture highlights a series of events that have marked the economic, cultural, and natural landscape of both countries in the past week.

Chile has been granted permission to export poultry meat and by-products to Paraguay, as reported by La Tribuna. This is a significant milestone for the Chilean poultry industry, opening a new market and fostering stronger economic ties between the two nations.

Simultaneously, the Organization for Economic Cooperation and Development (OECD) has raised its growth projection for the Chilean economy to 2.3% in 2024, a half percentage point increase from the 1.8% estimate in November last year. The Paris-based organization attributes this positive adjustment to a recovery of real wages, aided by falling inflation and more flexible financial conditions. The OECD also projects that inflation will continue to decrease and converge to a 3% target by mid-2025.

In the agricultural sector, exports of cherries to China increased by 16% in the 2023-2024 season, reaching a record US$ 2.260 billion, according to data from ProChile's Department of Market Intelligence. This notable increase demonstrates the robustness of Chile's agricultural sector and its ability to navigate the international market successfully.

Meanwhile, in Indonesia, the remote Mount Ruang volcano erupted multiple times, triggering the highest level of alert and the evacuation of thousands of people due to the threat of a tsunami from debris sliding into the sea. This natural event has drawn international attention to Indonesia and its volcanic activity.

The Indonesian-Chilean Chamber of Commerce and Culture continues to monitor these developments closely, recognizing their potential to shape the economic and cultural ties between the two nations.

• Chile obtuvo habilitación para exportar carne y subproductos de aves a Paraguay | La Tribuna (Latribuna.cl)
• OCDE eleva proyección de crecimiento de economía chilena al 2,3% en 2024 (Lanacion.cl)
• VIDEO: La espectacular imagen de rayos volcánicos en la erupción del Monte Ruang en Indonesia (Lanacion.cl)
• OCDE eleva la proyección de crecimiento para Chile al 2,3% en 2024 - Radio Santiago (Eldiariodesantiago.cl)
• Exportaciones de cerezas a China aumentaron 16% en temporada 2023-2024: Alcanzó US$ 2.260 millones - Radio Agricultura (Radioagricultura.cl)
• Exportaciones, cambio climático y alza en los costos. Por Camilo Cornejo Orellana, Ingeniero Agrónomo Académico Ingeniería Comercial Universidad Andrés Bello – G5noticias (G5noticias.cl)

The Chilean-Indonesian Chamber of Commerce and Culture highlights several key developments in bilateral trade, agriculture, and mining sectors between Chile and Indonesia this week.

The Chilean Blueberry Committee is set to organize a Technical Workshop titled "Efficiency in nutrition and irrigation during post-harvest" on March 27, 2024, at Agrícola Sauerburger. The workshop, which will feature a presentation by José Ignacio Covarrubias, aims to improve post-harvest practices in the blueberry industry.

On the mining front, Adani's copper foundry is set to require Chilean concentrates as part of its US$1.2 billion investment. This development is expected to boost Chile's copper exports and strengthen the bilateral trade relationship between Chile and Indonesia.

Furthermore, India's decision to reduce import duties on Chilean blueberries has been warmly welcomed by Chilean exporters. This move is anticipated to spur Chilean blueberry exports and contribute to the growth of the country's fruit industry.

Meanwhile, the total exports from Biobío have grown by 1.7% in 2023, despite a national decrease of 3.7%. This growth underscores the region's resilience and its significant contribution to Chile's economy.

Chile's fruit industry continues to thrive, with fruit-growing hectares reaching 375,600 hectares by the end of 2022. Over the last decade, the industry expanded by over 76,000 hectares, with cherry plantations leading the growth.

Lastly, Chile has made its presence felt at the world's largest mining fair in Canada, seeking investors and promoting its lithium and copper production. Chile's Minister of Mining, Aurora Williams, emphasized the country's position as a global leader in mineral reserves and its intent to advance in polymetallic mining through public-private partnerships.

• Comité de Arándanos de Frutas de Chile invita a Taller Técnico “Eficiencia en la nutrición y riego durante la postcosecha” – Simfruit (Simfruit.cl)
• Fundición de cobre de Adani de US$ 1.200 millones de inversión requerirá concentrados de Chile (Redimin.cl)
• India reduce aranceles a los arándanos chilenos | Artículo (Eldemocrata.cl)
• Exportaciones totales del Biobío crecen en 1,7% en 2023, mientras que a nivel nacional disminuyeron en 3,7% | La Tribuna (Latribuna.cl)
• Chile: Hectáreas frutícolas llegan a 375.600 hectáreas – Simfruit (Simfruit.cl)
• Chile llega a la mayor feria minera mundial en Canadá para buscar inversionistas y promover el litio y cobre (Reportediario.cl)

The Indonesia Chile Chamber of Commerce and Culture is closely monitoring the recent economic and social developments in both countries. Here are the major headlines for the week:

According to the National Institute of Statistics (INE), the Maule Region experienced a contraction of 16.1% in exports in October 2023, reaching a total of USD 180.3 million. The industrial sector remains the region's major exporter, with food being the most significant segment within this sector.

An unfortunate accident occurred at a nickel plant in Indonesia, claiming at least 13 lives. A flammable liquid caught fire during boiler repair works causing a deflagration that led to the explosion of nearby oxygen tanks. Our thoughts are with the victims and their families.

In positive news for Chilean exports, the country's fruit has been gaining popularity in the Chinese market. The Frutas de Chile brand is making strides in the market, particularly with peaches and apricots. This development strengthens Chile's position as one of the few countries whose entire fruit basket is approved for entry into China.

Global wine consumption has taken a hit, leading countries like Chile to abandon vineyards. Some, like Viña Santa Rita, are even considering complete removal of their vineyards.

Contrasting the situation in the Maule Region, the Tarapacá Region saw a 42% increase in export value in October 2023, reaching USD 524.7 million. However, the accumulated variation showed a 2.7% decrease compared to the same period last year.

Despite the recent change in Argentina's government, Chile's trade relations with its neighbor remain steady. The two countries share a high degree of complementarity in their economies, and their trade relations are governed by two international treaties that are not easily violated.

• Región del Maule: Exportaciones se contraen 16,1% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• Indonesia: al menos 13 muertos en una explosión en una planta de níquel (Telam.com.ar)
• "Chile es uno de los pocos países donde toda su fruta está aprobada para el ingreso a China" (Elmaucho.cl)
• Chile abandona viñedos ante caída de ventas (Eldemocrata.cl)
• Región de Tarapacá: Valor de exportaciones crece 42% en octubre de 2023 - PortalPortuario (Portalportuario.cl)
• El comercio de Chile con Argentina luego del triunfo de Milei (Elmostrador.cl)