The conditions of food scarcity revealed in the last days in the world show a potential for this country which bases its economy in agri exports. However, domestically there is an environment of crisis and challenges due to working force scarcity, high costs of raw materials and an unfavorable exchange rate for exporters who use the dollar as transaction currency.
Additionally, there is an energy crisis in China and an announced drougth for the next campaign. According to Pablo Escalona, consultant for agri-food platforms in China, the centralization to the US market and monetary challenges are perfect excuses to test new alternatives such as the Far East and China.
Currently, 70% of Chilean agri-exports are destined to the US. "Analyzing the Chilean history of our exports to the US, we remember the sad episode of cyanide contaminated grapes. In recent days, we heard about the problems with salmon to the same market. Both events had lot of attention both for Chile and US economic agents (...) Why not to ask for a better destination of resources to promote the country image in different countries like China and not in already saturated markets and situations which are less interesting for our customers, common consumers?" declared Mr. Escalona.
There is no doubt of the message of the current government with its recent visit to China: "It is necessary to remain focused on new markets like China", emphasizes Mr. Escalona.In 2007, only 0.7% was exported to China. Therefore, there is a lot of potential to grow. Chilean authorities left the way free with their travel to the Far East, but the firms are the responsible for the next step.Mr Escalona argues: "China is not an easy market, we have to think in the long term, forget about easy and fast returns, even in other way is possible. We have to resolve short term problems but this does not mean competitiveness for the long term. New market strategies, new destinations, technology and innovation have to be the priorities of the firms owners".Source Pablo Escalona BetteleyChina-ConsultingMobile : 56-81392982 Skype :pabloescalona418