Chilean agricultural enterprises are setting off a new wave of overseas investment

El Mercurio of Chile reported on August 10 that major Chilean fruit exporters are witnessing a new boom in overseas farmland investment, with investment destinations including Peru, Colombia, the United States, Brazil, and even regions in Africa. Their motivations are not only to realize year-round supply via producing areas across different seasons and mitigate climate risks, but also the rising "political risks" triggered by the large-scale protests in 2019 and the subsequent failure of the constitutional drafting process, which has pushed entrepreneurs to accelerate the transfer of part of their production capacity abroad. A number of representative enterprises have purchased land and started production in the United States, Peru, Colombia and other locations, and some have even engaged the next generation of their families in international operations. Meanwhile, Peru's low land cost, preferential tax policies and flexible agricultural regulations have also attracted more than 8 Chilean enterprises to set up operations there. It is widely acknowledged across the industry that "cumbersome license approval procedures" have further restricted local expansion in Chile, while overseas investment is seen as a key strategy to improve profitability and ensure supply chain security. Even so, most enterprises state that they will continue to make investments in Chile's domestic market.
 

Source: Economic and Commercial Office of the Embassy of the People's Republic of China in the Republic of Chile