Agricultural Machinery and Equipment

An Expert's View about Agricultural and Forestry Machinery in Chile

Posted on: 12 Jul 2012

The Chilean market for agriculture machinery and equipment grew by approximately 44% and is expected to grow approximately 18% during 2012.

Agricultural Machinery and Equipment A Top Export Prospect for Chile June 2012 Overview 2012 2013 in USD millions 2010 2011 (estimated) (estimated) Total Market Size 398,668 582,157 629,562 681,191 Total Local Production 7,463 7,800 8,000 8,200 Total Exports 22,475 23,200 23,800 24,000 Total Imports 414,970 597,557 645,362 696,991 Imports from the U.S. 60,717 95,609 103,258 111,519 Exchange Rate: 1 USD 500 484 486 489 Total Market Size = (Total Local Production + Total Imports) – (Total Exports) Data Sources: Total Local Production: Sofofa, Sociedad de Fomento Fabril Export/Import data: Chilean Customs; Central Bank Chilean exports of agriculture and agro-industrial products grew by 12% during 2011, due to an increase of international prices and local implementation of new production processes based on new and more efficient machinery and equipment. Consequently, the market for agriculture machinery and equipment grew by approximately 44% and is expected to grow approximately 18% during 2012, and at rates between 7-8% yearly average, through 2015. Importantly, new and higher efficiency machinery has directly increased productivity. Some agriculture processes such as harvesting, have replaced the human labor with harvesting machinery. This increased use of automated equipment has helped resolve the problem of rising labor costs in the last eight years. Despite productivity gains, Chile’s exporters (of which agricultural exports represent a high percentage) have suffered due to the very weak US dollar compared to the Chilean peso. However, the weak dollar has made imported machinery and equipment denominated in US dollars more attractive. The United States accounts for approximately 16% of equipment imports. Sub-Sector Best Prospects • Irrigation infrastructure is required to maximize efficiency of water usage. There is still a need for irrigation infrastructure due to the 2010 earthquake, which occurred just to the southwest of Chile’s main agricultural region. • Precision agriculture equipment: To effectively monitor production conditions and improve crop yield. • Fresh fruit harvesting equipment: To reduce labor and production costs. Top US ospects Agr 2 Export Pr in Chile 2012: icultural Machinery and Equipment • In general, machinery and equipment that reduce energy consumption, that are environmentally friendly, and that makes processes more efficient are good prospects within the industry. Opportunities The following trade shows provide an excellent opportunity to enter the Chilean market: • Vinitech (wine industry trade show), March 2013, Santiago: • Agrotech (agriculture machinery and equipment trade fair), September-October 2013, Santiago: • FruitTrade (related to fruit production and exporting), October 8-9, 2012, Santiago: Best opportunities relate to sub-sector best prospects. There are ongoing sales opportunities but no major projects to report at this time. Web Resources • ODEPA, Oficina de Planificación Agraria (Chilean Office for Agricultural Policy Studies): • Ministry of Agriculture: • SAG, Servicio Agrícola y Ganadero (Agriculture and Cattle Service): • SNA, Sociedad Nacional de Agricultura (National Association of Agriculture): • INDAP, Instituto de Desarrollo Agropecuario, (Institute of Agriculture Development): • SOFOFA, Sociedad de Fomento Fabril, (Industrial Manufacturers Association): For More Information Please contact Mary Lou Lathrop, Commercial Specialist for agricultural machinery and equipment at the U.S. Commercial Service in Chile at or (56) 2-330-3371. You can also visit our website at The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 12 July 2012