Chile takes off as an exporter of services in agriculture
Although there are no exact figures on how much the sector is expanding, since it is not categorized in detail in Customs and several companies create subsidiaries in other countries, the companies that are already present recognize a greater dynamism in the last three years.
Latin America is the most attractive market, especially Peru and Colombia. The key is to identify the demand, know the business culture of each country and have local support professionals.
In a visit to a precision agriculture fair in Córdoba, Argentina, the agronomist Luis Felipe Román proved that the idea that had been around for a couple of years could be good. In the different positions, he was struck by the fact that the systems and applications that were offered for the work in the field were not connected with the administrative area of the companies or their financial results, and that there was a business opportunity.
Two years ago, together with Christian Garcés -his university friend, also an agronomist, who believed in the idea- formed Agropreciso, a company that seeks to improve the management of fields through software that allows the use of maps with information in real time on inventories, labors, productivity and performance indicators, among other functions. They operate in Arica, they have five clients in Chile and this year they intend to enter Peru.
"For me, going to the Peruvian fruit area from Arica is shorter than going to the central Chilean zone. I have been working with Peruvians for some time and I have contacts, so it is easier for me to grow in Chile“, explains Luis Felipe Román, as one of the reasons to look at the neighboring country as a natural market to expand his system.
And he is not the only one who is trying. The boom in agricultural exports in Peru in recent years, especially fruit, have made it an attractive destination for shipments of supplies, advice and services developed in Chile, because the national model is seen as a benchmark, and has led consultants and lawyers to open offices in Lima.
In a more incipient way, the same happens in Colombia, where the peace process would be giving way to new fruit projects - in species such as blueberries and avocados, as well as tropical fruits - that look with interest on the Chilean experience.
Along with that, since last year, ProChile has begun to develop a plan to promote the internationalization of agricultural service companies, with the idea of replicating what happens in the mining and salmon industry.
"Almost the 80% of the price of a Chilean apple placed in Philadelphia corresponds to services. If Chile is recognized for offering good quality products, it is because there is a large group of service companies behind working for that. So, we have the potential and we can leave Chile to do what we know“, says the director of ProChile, Alejandro Buvinic.
However, the lack of statistics for the sector -recently in 2014 was created in Customs a gloss for some types of services, others are not categorized and in many cases companies do not export, but create subsidiaries in other countries- has been a obstacle to really know how to quantify it, how much it grows each year and where are the companies that could make a leap export.
"The problem we are faced with is that there are no unique trade associations in relation to the issue of agricultural services. We are working to promote them, because it would be a great element to boost their development“, says Alejandro Buvinic.
The businessmen and advisers who already operate outside the country assure that, although the beginning is not easy, the results are positive, and insist that it is key to know the countries and their business culture well, to have a demand that justifies the internationalization and be able to rely on local partners or technical teams to provide a quality service.
Generally, exports of services have grown 6,4% during the last decade.
80% of the price of a Chilean apple placed in Philadelphia corresponds to services.
UTILITES: EXPORTING EXPERIENCE
About to turn ten years old, the consultancy Utilitas has strongly promoted the direct export of fruit in Chile, providing logistics services, access to inputs and marketing for producers, with which it already helps to move around 4 million boxes of fruits per year. They have been doing the same thing since 2012 in Peru, where they opened offices, and they are looking closely at Colombia, to eventually expand there. “From what we usually do in Chile, where our business unit goes through providing all services to producers so that they can export directly, we developed knowledge and experiences that are now valued by other people who are starting to follow the same path in other countries. That is what one exports, finally knowledge and experience“, says the creator of Utilizas, Rodrigo Manasevich. He warns, however, that it is not arriving and leaving to settle. He says that the potential of a country is not enough, that it is necessary to know the local cultural characteristics, understand in detail how businesses develop and adapt services to that reality, in addition to having an appropriate team of people who are willing to move. “It is not easy, not everyone is successful in this bet. There are companies that have gone to Peru and have had to return, because they are copied and followed by the Peruvian company. There are people who are associated with local people, others who go on their own and move alone, everything depends on how you want to develop the business", Explain.
As for Colombia, he believes that it is a destination in which they could settle in the future, although for now they are analyzing whether it has the potential to do so. “We receive calls and requests, but we are waiting for the scale to take place to be able to settle. The opportunities for services are in the region, close to ourselves”, she affirms.
Source: Economy and business
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