Chile is committed to promoting aquaculture species such as Sea Bass.

The Chilean government seeks to boost aquaculture industry with the development of four species of fish farms in the north and south, to clear the extractive fishing that is virtually collapsed.

“Chile is pure coast and is much more convenient to become an aquaculture country instead of one focused in producing livestock as the years go by and capture fisheries have virtually collapsed,” said Patricio Bustos, director of ADL Diagnostic Chile, one of laboratories studying and controlling diseases of fish.

The Under-secretary of Fisheries and Aquaculture (SUBPESCA) aims to increase the sea bass farming, mahi mahi, hake and cod, as alternatives to salmon production.

“Salmon is a fish that because of its characteristics has a higher value and, therefore, a spectrum of specific market in which the sea bass does not compete,” said Bustos regarding this fish, whose exports in 2013 amounted to a value of US$ 3,517 million, increasing 21.6% from the previous year.

The identified species are under investigation within a program of the Corporation of Production Development (CORFO) and working in a context “that has to do with protection of national health equity,” Bustos said.

The truth is that “when importing species from other countries there are also important health risks” and therefore the evaluation of diseases that are common in these species are especially important according to ADL Diagnostic Chile.

Currently complete technologies are being developed for growing species, including cages and ponds for harvesting and fattening.

Decentralize the Chilean salmon fishing industry is one of the objectives of the project, but also promote the consumption of these species because “marine fish are a healthy food source rich in omega 3,” recalled Bustos.

Another activity that is being promoted is the cultivation of algae, that in opinion of the aquaculture division chief from SUBPESCA, José Miguel Burgos, is another activity with great potential in the sector.

Although the project is still in the experimental stage, one of the companies involved in this CORFO project, Acuícula Norte, are exporting mahi mahi to markets of the European Union.

Chile is now the second largest producer of salmon, species that has taken up the market but, with projects such as the one from CORFO, begins to make room for export other species.

(Source: América Economía)

Hilton Hotel Chain will open eight hotels in Chile and Peru under the brand Hampton

Hilton Hotels will open in the coming years eight hotels in Latin America under the brand Hampton by Hilton, four of which are in Chile and four in Peru, the company reported last Tuesday.

The announcement was made at Bogota after signing agreements between Hilton Worldwide and the Colombian company Metro Hotels. The U.S. company said in a statement that this expansion is “the further development of the brand in the region in recent years.”

“Peru and Chile have shown great potential in providing tourism and business opportunities,” said the president of Hilton Worldwide, Ian Carter, adding that “this is a great time to expand the Hilton presence in these markets.” The opening of the first two hotels in Lima and Santiago is scheduled for the initial months of 2018.

The Metro Hotels, Hilton partner in these projects, group opened a few months ago Hampton by Hilton Cali and plans to complete its expansion with the opening in 2015 of other hotels in the Colombian cities of Valledupar and Yopal and one in building process at Usaquén sector in the north of Bogota.

“Our intention is to continue the growth strategy in Latin American countries with stable and healthy economies, and positioning the brand Hampton by Hilton as the most important for business travelers in major and intermediate cities,” said development manager from Metro Hotels, Felipe Galeano, quoting the statement.

The announcement of expansion in Latin America “is a complement” to the recent opening of the hotel in Cali, Colombia , being the third in the Hampton brand, adding to establishments in the Caribbean cities of Cartagena and Barranquilla.

The Hilton group has a portfolio of six hotels in Colombia, three in Peru and one in Chile.

In Chile, the group has a presence since 2011, through the “Hilton Garden Inn Santiago – Airport” and intends to open a new hotel by late 2014 through a franchise granted to Vitacura SA hotel, the eighteen-story building that will house the new “DoubleTree by Hilton Santiago Vitacura” is strategically situated in the business center of the country. The hotel will be managed by the Chilean hotel, under the leadership of Rodrigo Parot, who has more than thirty-five years of experience in the industry, through national and international brands.

The hotel will have 230 rooms, a restaurant, a cafe and a bar / lounge. It will have 1,115 square meters approximately of spaces for business, with a wide and flexible range of offices for use by day or long term, boardrooms and meeting rooms. Also have a gym and executive lounge open 24/7 to passengers, as well as high speed wireless internet in all rooms and public areas, as dictated by the standard of the DoubleTree by Hilton brand.

(Sources: Emol , América Economía )

Chile Government announces that “Chile Day” will be held this year in London.

The Finance Minister Alberto Arenas, and InBest directory, headed by Alfredo Ergas, defined this year’s “Chile Day” will be held on 13 and 14 October in London.

The event aims to promote investments in Chile and highlight the political, institutional and financial stability.

InBest directory and British Ambassador in Chile, Fiona Clouder, will materialize the official invitation to the minister Arenas on 3 July.

Chile Day is an instance of public-private partnership, with the sponsorship of the Chilean Ministry of Finance and the British Embassy. Chile seeks to promote abroad as a highly attractive country for investment and as a financial platform of fund management for Latin America and emerging markets, and strengthen the links between our local capital market and its global partners.

It also is a great opportunity for foreign investors to make contact with leading entrepreneurs and executives from leading Chilean companies (domestic and foreign), as well as getting acquainted with the attributes, regulations and challenges of the Chilean capital market.

This event is attended by leading institutional investors with interests in Chile and actors of the international finance system. From our country, every year attends a large delegation with representatives of first level of a large group of Chilean companies, securities market participants, regulators and private actors in the financial system both locally and internationally.

The 2014 version is the eighth version of “Chile Day”. Four versions have been organized previously in the city of New York in the United States and three in the City of London, UK.

(Source: Ministry of Finance/Ministerio de Hacienda)

U.S. $ 100M are allocated to the National Sustainable Tourism Development Fund

The Chilean Minister of Economy, Development and Tourism, Luis Felipe Céspedes, announced that US$100 million will go to the National Fund of Development of Sustainable Tourism for the period 2015-2018.

This initiative, which is part of the Agenda for Productivity, Innovation and Growth, “will finance and manage promotional activities, development activities and offer products at destination, enabling infrastructure and advocacy, quality and training in the sector to allow its thrive and overcoming the gaps, “the official said.

The Minister made ​​the announcement at the 1st Forum of Leadership in Tourism, to reaffirm the importance of tourism as a countercyclical productive activity, focusing on regions, to contribute to the national and local identity and where there are large spaces for growth and innovation.

Through the announced Fund, the Government will prioritize the promotion of tourism sector, investment in infrastructure, the development of offers in activities and products at destination, in addition to cooperation in quality certification and human capital. The Minister announced that this year there will also be conducted studies to identify, among others, gaps and development opportunities in the areas of development of the cruise and connectivity industry.

“The US$100 million will finance the Tourism Development Plan through the National Fund, which in turn will we channelled through different lines as national and international promotion; human, infrastructure and product development, through public institutions with their own equity instruments, “said Undersecretary of Tourism, Javiera Montes. She also confirmed that funds for the promotion of tourism will be doubled from U.S. $ 13 million to $ 26 million, but said it is evaluating how this decision will be implemented.

On supplementary challenges of tourism development agenda, the Under-Secretary stressed the start value will be enhanced in National Parks and Protected Areas for providing them with the infrastructure and services required for visitors. Public investment and development instruments focusing on the areas of tourist interest, the development of tourist areas in Extreme Areas of the country and promote social programs will be strengthened, including a new program for family holidays that will add to the existing associated with travel for seniors citizen and study tours.


PepsiCo recognizes Chilean Company CCU as the “Bottler of the Year” worldwide

For the first time in its history, Chilean Company CCU was awarded the prize “Bottler of the Year” at a global level, PepsiCo distinction delivered to only one of more than its 200 bottlers across five continents.

The “Bottler of the Year” from PepsiCo, award that has a history of over 25 years recognizes each season the top three international bottlers, one in Europe, one in AMEA (Asia, Middle East and Africa) and one in Latin America. Of these three participants with the highest distinction a winner is chosen, decision made by Indra Nooyi, CEO of PepsiCo.

To give this award are considered factors such as brand value, sustained growth in market share and volumes, alignment with PepsiCo initiatives and development of new joint initiatives, customer service, product quality and care for the environment, among others.

In 2013, CCU was elected Bottler of the Year for the Latin American region, recognition which again won this year having won this time also, the maximum award for Best Bottler in the world, becoming the first national company to do so.

The award ceremony was held on Friday June 13 in Cancun, Mexico where Indra Nooyi, PepsiCo CEO, presented the award to CCU, represented by Andronico Luksic, Chairman of CCU; Patricio Jottar, General Manager of CCU, Francisco Diharasarri, General Manager of CCU Bottler (ECCUSA) and other executives of the national firm.

Andronico Luksic, Chairman of CCU , said that “as a Chilean company, we are very proud to be up to the challenge of having partners of the highest level worldwide, as evidenced by this recognition.”

Meanwhile, Luis Montoya, President of PepsiCo Beverages Latin America, said that “because we have a long term relationship with CCU, based on a firm foundation, we have been able to develop new products, investing in technology and innovation. All of the above has allowed us as PepsiCo to deliver our global know-how, through a local view of CCU, so the mix is ideal and has worked in an excellent way. ”

(Source: Emol)

Chile: the new benchmark for the growing of black truffle

From being one of the most coveted international spices that did not exist in Chile; now, thanks to the Foundation for Agrarian Innovation and private-company, 300 acres are being grown and by 2025 the industry aims to achieve a production of more than one annual tonne in order to position itself in the international markets.

Until a few years ago it was unthinkable that in Chile truffle could be grown and today is happening – with the support of the Foundation for Agrarian Innovation (FIA) and the Agrobiotruf company seeks to position the crop in international markets, becoming a new alternative agribusiness producers for the Metropolitan area and O’Higgins, Maule, Biobío, Araucanía, Los Ríos and Los Lagos regions.

In this context took place the gastronomic event “The Chilean truffle party” under the framework of the project “Truffles made ​​in Chile: Positioning Chile as a major player in truffle major international markets”, made by the company Agrobiotruf.

The activity was held at Emilia Romagna Ristorante in Concepción, where different dishes with Chilean truffles were prepared for a testing party. They were made specially by chefs from the Italian Food Style Education Culinary Institute.

The activity was led by the FIA executive director, Héctor Echeverría, agriculture SEREMI from Biobío region, Rodrigo García and PROCHILE regional director, Sandra Ibáñez along with top chefs, gourmet specialised press and national producers.

This restaurant will be the first to offer truffles on their menu permanently and to organize black truffle national events each year. Making it the first gastronomic event of this type in the region of Biobío.

Chile was the first South American country to cultivate this species-the first truffles were harvested in 2009 Panguipulli, Los Rios Region-opening a new alternative of agricultural long term business for producers that viewed in this crop a number of advantages compared to traditional ones.

However, one of the limitations was the lack of a crop management system to increase and stimulate the production of national truffle, lack of legislation regulating the exports and imports of a product with certified quality and lack of collaboration among domestic producers .

It is for this reason that the company Agrobiotruf, with the development of FIA project, established an agricultural management that will quickly increase and stimulate the production in national plantations. In turn, the company has already accomplished the first certification of black truffles produced in Chile and the creation of the first Truffle Association of Chile, “which currently has 29 farmers covering an area of ​​60 ha. This allows generating business networks to export our products and be able to qualify for better prices in the international market, “said the coordinator of the initiative, Rafael Henriquez.

In the country there are currently 300 ha of crops and the expected annual growth is of 50-60 hectares of crops per year. It is expected that from 2014 the total annual production will increase in about 30 Kg per year.

“One hectare of black truffle in full production, can generate more than US$ 30,000 annually in returns. The crop has low fertilizer and labor requirements, so it can be an excellent opportunity for agribusiness in the medium to long term, where small and medium farmers can have a good business opportunity by taking advantage of incentives from the irrigation law and, when approved, the new law on forest development, “said the executive director of FIA, Hector Echeverria.

The total amount of truffles produced in 2013 was around 30 Kg. 17 Kg of which were for domestic consumption and 13 kg were exported. The kilo of truffle has a market value ranging between $ 1000 to $ 1500.

In 2014 is expected to reach a total production of 50 Kg. There are already orders for 35-40 Kg to be shipped to Mexico, Brazil and the U.S. markets that purchase for a good price because of counterseason and duty free on the import of these products.

“Truffles, as a gourmet product has no competitor. In Chile, and South America, we managed to cultivate it by developing technology and skills to make this possible. Today we want to share this crop, and by 2025, we intend to achieve a production of more than one tonne per year, “said Rafael Henriquez.

The black truffle of Perigord (Tuber melanosporum) is a mycorrhizal fungus that grows naturally associated with the roots of holm oak (Quercus ilex), oak (Quercus robur) and European hazel (Corylus avellana), on calcareous soils in certain areas of France, Spain and Italy. They are considered among the finest edible mushrooms and have a great reputation in the international gastronomy being in the same category of caviar, saffron and foie gras. It is harvested in winter, using specially trained dogs being carefully removed by the searchers. They grow superficially, in a maximum of 20 inches below ground.

The Regional Director of ProChile Biobío, Sandra Ibáñez, noted that “the export of truffle is an example of what we want for our small farmers since it helps in the development of high-value crops, which offer new alternatives for farmers and they also have a high international demand. ”

(Source: Portal del Campo)

Bachelet announces measures to boost investment and progress in power projects

Addressing more than 700 executives and representatives of the energy industry that gathered last night at the “Supper of Energy”, President Michelle Bachelet announced a series of measures that aims to unlock investment and simultaneously move forward in the making of projects to strengthen the electricity transmission system.

The president said the government is aware of the urgent need to promote projects that meet the infrastructure deficit in this sector, “because of this, the government will strongly support all initiatives that comply with current regulations and are properly inserted into their respective communities. “

On this last point the head of state was emphatic in stating that the government will move forward on a solid and reliable institutional framework for all stakeholders, “Starting by citizens!” Bachelet said and added that one of the keys will be to improve the relationship between energy projects and the communities that host them.

“The state is going to actively work in an open process with the community, so that investments are made and can be made in the best way, without discarding any technology, but taking charge of the new scenario in the country” said in relation to hydropower development.

The president said the government learned that the way is energy diversification, public-private partnerships, work around efficiency and dialogue with the territories.

Bachelet insisted in the core of the Agenda of Energy: “We also need more competition, we need more players to invest in the sector and to do so with the pace required by the situation.”

Another development of the Energy Agenda that the president announced were in relation to GNL. ENAP said that it is negotiating a 10-year contract term supply of natural gas, allowing the partial operation of a combined cycle plant, which would help lower the marginal cost of generation. The contract also includes the opening of GNL Quintero terminal to third parties, by transferring to the generator part of the regasification capacity of the state. Bachelet also said that in conjunction with the ongoing expansion of the plant (15 million cubic meters per day) ENAP is promoting, through GNL Chile, a new extension of Quintero terminal to 20 million cubic meters per day.

“We will strive to incorporate into our electricity generation matrix as soon as possible, conventional projects that already have a favorable environmental qualification resolution and comply with current regulations,” said President Bachelet in her speech. She added that as a government they will “bet” by initiatives that are currently being incorporated into the work plan of the CNE and its entry into operation is scheduled between 2015 and 2018 (865 MW water and 622 MW thermal). The government will continue to promote projects of Non-Conventional Renewable Energy and hope to incorporate 1,200 MW in the next 4 years.

(Source: Diario Financiero)

Global Vision for the Insurance Industry in Chile

The insurance industry has been in Chile since 1853, allowing Chilean to manage their risks and reduce the uncertainty inherent in all human activities. It is known for being highly competitive, forcing his players to maintain high standards of efficiency.

Chile was the ­first Latin America country to open its market to foreign insurance. Most of the leading insurance companies in the Chilean market are part of multinational groups. Chile’s top five insurance companies by market share are Royal & SunAlliance (18.5%), Penta (11.6%), Mapfre (10.7%), Chartis (9.6%), and Liberty (8.5%), which are all local units of foreign companies except Penta.

There are around 54 insurance companies in the country divided into general and life insurance. Chile’s insurance sector is usually divided into life insurance and general insurance. Life insurance is by far the largest of the two accounting for about two-thirds of the total insurance market, and it’s growing fast. Between 2001 and 2010, life insurance premiums tripled from about $2 billion to nearly $6 billion, growing at an average annual rate of 13%.

The first half of 2013, the insurance market as a whole reported total sales reaching US$5,597 million, which represents a real increase of 5.1% over the same period in the previous year. Between January and June 2013, the market for life insurance showed an increase in real terms of 6.6% in sales compared to the same period of the same period in the previous year, reaching US$ 3,801 million while the general insurance market expanded 2.0% in the same period, reaching US$ 1,795 million. In the first half of 2013, the life insurance market generated profits reaching US$ 221.6 million, while the market of general insurance made profits of US$ 82.2 million.

The third quarter of 2013, the insurance market as a whole recorded total sales reaching US$ 8,483 million, representing a real increase of 3.9% over the same
period last year and total profits of US$ 377 million. In the third quarter of 2013, the general insurance market obtained profits of US$ 105.2 million, representing an increase of 22.5% over the same period last year. Life insurance generated profits of U.S. $ 271.4 million. The best results in general insurance are the result of an increase in investment income and lower expenses in technical reserves.

The figures are clear and the outlook for the insurance sector in Chile is auspicious, since the country has sound macroeconomic projections.

The Chilean insurance sector is stable, indicating the high probability of reaffirming
the ratings assigned to the Chilean insurance market during 2014 revisions. The Chilean insurance industry reflects maturity levels in the regional context. The overall industry would close 2013 with an increase of around 5% in real terms set to continue during 2014, with growth expected at around 5.0% and 5.5%.
The insurance industry in Chile remains a highly competitive business on a structured and mature environment. The industry should continue keeping proportions having life insurance 2/3 of the share of the market and 1/3 of general insurance.

The insurance protection against natural disasters is solid, including risks earthquake and tsunami, and does not compromise the solvency of companies. While earthquakes represent the greatest exposure to catastrophes for insurers in Chile, the 27F disaster of 2010 was a strong stress test that successfully beat the market.


Superintendency of Securities and Insurance / Superintendencia de Valores y Seguros

Fitch ratings

Espacio Food and Service 2014: International Trade Fair for the Food Industry

The food industry has a great impact in different economic sectors of the country,
such as agriculture, foreign trade, education, work and health.

Innovative products and services with high added value will we presented in “Food & Service Space 2014″ in its fourth version. This is the largest exhibition of food industry suppliers in Chile, which already has committed 98% of their stands.

The event will be held in the Event Center and Convention Espacio Riesco, Santiago, Chile. It will take place on September 3rd, 4th and 5th 2014, and is addressed to those professionals that participate or interact in the different decision making processes, in the choosing of their products and/or services. In 12.500 sq mts, the fair expects to count on more than 500 stands and the presence of 12.000 visitors

Food and Service Space aims to be a platform for various market players seeking to form new business connections, along with the ability to find the latest trends in food service, such as new raw materials, equipment, tools, supplies and services.

“Space Food & Service” will be a place of gathering, exchange of ideas and feedback. An annual fair that aims to make visible the challenges facing the industry by delivering products and services that best meet the needs of the population, as well as add value to the operation.

The meeting convenes primarily to professionals and those responsible for purchasing and operations of the major categories of institutional channel industry, hotels, restaurants, casinos, fast food chains, caterers, nutritionists, convenience stores, cook and chill plants , among others.

In parallel to the fair, there is a complete agenda with special activities such as
gastronomic competition, technical lectures, launching of products, conferences, cooking master classes among other activities.

Source: Espacio Food Service


Agri-food Industry in Chile.

The area cultivated for fruit has increased from 221,000 to 265,000 hectares over the 2004 to 2009 period, representing an increase of almost 20%

Widely known because of its quality, Chilean fresh fruit enjoys strong demand from the world’s most discriminating consumers. Being the world’s largest shipper of grapes, plums, apples, blueberries, nectarines and peaches, Chile accounts for nearly 60 percent of Southern Hemisphere exports. Growing demand for health foods has been key to worldwide expansion of Chilean fresh fruit exports.
The Chilean agri-food industry has four major subsectors, including dried, canned, frozen, and juice concentrate, with processing plants throughout the country.

Most dried product plants are from Coquimbo to Los Lagos regions, specially in Metropolitan Santiago, Valparaíso, and O’Higgins regions. Canneries extend from Arica and Parinacota on the north to Araucanía in the south with most clustered in Maule, Metropolitan Santiago,and Valparaíso regions. Most frozen product plants stand from Valparaíso to Los Lagos, notably in Maule, Metropolitan Santiago, and O’Higgins regions. Juice concentrate plants stand from Coquimbo to Los Lagos especially in Maule and Metropolitan Santiago.

This is a major industry. In Chile, 52 percent of farm produce is destined to the agri-food industry, which in turn ships 86 percent of its output to markets abroad.

Processed food exports have grown 234 percent in the past decade are were worth US$1.4 billion FOB in 2012 alone.

Concerning the production of nuts, Chilean nuts industry has undergone radical changes in the past 15 years. Substantial increases in walnut, almond and hazelnut output have turned Chile into the Southern Hemisphere’s largest producer of some nuts and the world’s largest of others. It is not only because of volume, but Chilean leadership rests mostly on recognized product quality. Reverse season have also played a big role in sustained increase of exports.

The leading products are shelled and unshelled walnuts, shelled and unshelled almonds, shelled and unshelled hazelnuts, chestnuts. From 2009 to 2012 Chilean nut exports grew from US$130 million to US$273 million. Accounting for over two thirds of nut exports, walnuts alone rose from US$80 million to US$195 million.

Source: ProChile