Chilean carrion plantations soar 18-fold in 22 years, driven by high Chinese demand

Chile’s Office of Agricultural Research and Policy (Odepa) reported that in 2000, the area of Chilean carrion tree plantations was only 3,241 hectares, but in 2022, the number increased 18 times to 61,559 hectares.

Chile PortalPortuario website reported on March 13, the report also said that as of January 2023, the 2022/23 season Chilean carrion exports reached 384,000 tons, up 18.6% year-on-year, and exports amounted to 1.622 billion U.S. dollars (FOB, the same below), up 7.3% year-on-year, and mainly to the Chinese market.

The figures confirm that due to the huge demand from China, the Chilean carrion market is expanding day by day, and the area of carrion plantations is also growing exponentially. 2021/22 season, more than 90% of Chilean carrion shipped to the Chinese market.

However, some experts have warned that the rapid growth of Chilean plantations may pose logistical problems, while causing difficulties in production management costs, yield, water control and variety analysis.

Juan Pablo Subercaseaux, a scholar at the Catholic University of Chile (UC), agricultural economics expert and carrion grower, said profit margins may decrease as supply increases and competition among carrion growers intensifies. “Those who have a competitive advantage can continue to do well in business, but those who have reduced yields and higher production costs because of climate problems in their areas, it’s not so easy.”

According to Subecasso, the carrion harvest is very short, with about 80 percent concentrated in December each year, and needs to arrive in China before the Chinese Lunar New Year, which results in a large amount of manpower needed in a short period of time. Considering this fact, ideally, growers should calculate the harvest time and keep the Chinese New Year in mind.

On the other hand, Subecasso expects the number of Chilean carrion picking professionals to rise from 200,000 to 600,000 between 2017 and 2025.

Source: SouthAmericanDaily.com


Post time: Mar-23-2023