AREA REPORT – CHILE2010

Eduardo Olate and Flavia Schiappacasse

The floriculture industry in Chile has never reached the value and importance of its fruticulture industry. Both lilium and tulip bulbs, as well as flower seeds are the most valuable floriculture crops. In the cut flower industry, valued less than US$3 million, the peony is the most important product.

The local demand has been expanding over the last years, along with the increase in the purchasing power. Today Chile acts as a net cut flower importer; more flowers are imported than the ones that are exported. Among the imported flowers, there is Leucadendron ‘Safari Sunset’ from Ecuador, imported during the winter months.

There is no Association, that would be useful at least to agree upon grades and standards, and suggested prices in the local market. Marketing and promotion are needed; an association could target users and potential users of existing products as well as new products.

The proteas have been first introduced in 1994. Today the cultivated surface reaches 40 ha. Initially there were two main cvs., but now we have much more diversity. There are about 8 growers, of which 3 are very small (less than 1 ha each), one had a fire, one was severely hit by wood and soil associated diseases, and one decided to go out of this business. There is a new grower, who cultivates citrics. His planting (20,000 plants so far) is located in Ovalle (North of Santiago), a region with excellent climate for protea production, but with soil pH over 7. We are expectant to see the results of such planting, that could greatly expand the planted surface in Chile.

Present conditions don´t favor protea exports; the US$ exchange rate continues to decrease, and there is an increasing competition with countries that produce year round and supply the same markets. The airfreight availability and cost are not favorable. The 2009 protea export value was only US$ FOB 44,000 (US$ FOB 2,511,000.- total cut flower exports). Nevertheless, two advantages are that the sanitary inspections are made before the shipments (both air and sea shipment), and the proteas exports to USA are tariff-free.

The main crops in Chile used to be Leucadendron ‘Safari Sunset’ and L. ‘Safari Goldstrike’, but the strategy for the next years are to produce specialty products, high diversity, not bulk products anymore, and focus on quality and innovation.