See for Yourself mission wraps up with market outlook, and a taste of Chile
The final day of the See for Yourself mission in Chile began with presentations from representatives of organizations promoting the growth of the Chilean agriculture and bio-products industries.
Fledgling Biodiesel Industry in Chile focuses on non-crop feedstock sources
See For Yourself delegates received updates on Chile's growing meat industry from a representative of Fundación Chile.
On Friday morning the See for Yourself mission delegates heard a presentation from Biocomsa, a consortium of the University of Chili’s Forestry, Agronomy and Physics Sciences schools. The organization, which partners with Chile’s state-owned energy company, was formed to examine, support and develop the biodiesel industry in Chile.
In Chile, where there is heavy competition for arable cropland, the primary focus of the Biocomsa consortium is to explore ways to use existing resources such as forestry waste products and other non-crop feedstock sources to supply the country’s growing demand for renewable energy.
Growth in Chilean meat industry signals potential for soybean market
See for Yourself delegates also met with the agriculture programs manager for Fundación Chile, a private, non-profit institution created by the Chilean government and the American company ITT Corporation. The foundation’s mission is to introduce innovations and develop human capital in key clusters of the Chilean economy, including agriculture, through technology management.
Growth in pork, poultry and salmon production in Chile suggest a growing demand for high-quality protein.
The Fundación Chile presentation offered some insights into the possible direction of the soy market in Chile. In general, the demand for soybean meal and soy oil in Chile is likely to grow as Chile’s domestic meat production grows. According to the Fundación Chile presentation, pork, poultry and salmon production grew at an average annual rate of 6-10% from 1996 to 2006. The value of Chilean meat exports over that time grew from $544 million to $2.7 billion (US$). However, based on the presentation the See for Yourself delegates heard from AgroSuper’s management on Wednesday, the numbers for production growth and export values are likely much higher from 2006 into 2010.
The significant growth of the Chilean meat production sector, especially in salmon production, suggests there is potential for significant growth in the demand for soybean feed products as well. In fact, the Fundación Chile presentation showed data in which they project the demand for livestock and fish feed in 2010 to reach 4.5 million metric tons. The Fundación Chile presenter noted that in Chile there are currently no domestic oil extraction facilities, which means soy oil is imported, often from Argentina, and then refined in Chile. (Exception: we do know that AgroSuper has its own crushing plant for its swine feed program). The Fundación Chile presenter also reported that there is much interest in finding alternative high-quality protein sources to replace the use of fish meal in salmon production.
Bottom line: The Chilean market for high-quality protein sources for swine, poultry and salmon feed rations will grow as the Chilean meet production sector continues grow.
Minnesota growers enjoy a visit to one of Chile’s preeminent wineries
The historic and legendary Chilean winery of Concha y Toro
Our final stop before concluding our See for Yourself mission to Chile was the internationally renowned winery, Concha y Toro. We enjoyed a tour of new vineyards, explored the winery’s legendary cellars, and concluded our visit with a fine lunch featuring traditional Chilean dishes, and of course a glass of Concha Toro wine.
Minnesota soybean growers inspect new grape vines at Concha y Toro.
Minnesota delegates enjoy a lunch of traditional Chilean dishes.