The total value of agritech exports to Chile from New Zealand was just over US$14 million in 2009. This included fruit processing machinery (US$6.5 million), seeds (US$3.8 million), agricultural machinery, agritech hardware and parts (US$1.4 million), animal health and veterinary products (US$1 million), electric fence equipment (US$1 million) and genetics (US$363 thousand).
Getting your product into market
New Zealand pastoral farming products are well positioned in the market to increase agricultural productivity by improving pasture, animal and farm management. Rather than promoting the New Zealand pastoral-farming model as an integrated package, promotion strategies should focus on stand-alone elements that can be applied to the way Chilean farmers operate today.
Regulation
New Zealand and Chile are signatories to the Trans-Pacific Strategic Economic Partnership Agreement (commonly known as P4). Around 90 percent of New Zealand’s exports to Chile can enter duty free provided that they meet the rules of origin criteria.
he products that require certification prior to import from the Chilean Animal Health Service (Servicio Agrícola y Ganadera or SAG) include:
- Plant products and any products that might present a danger to plants
- Animals
- Fertilizers and pesticides
- Veterinary products and animal feed
The products that require certification prior to import from the Chilean Health Service (Instituto de Salud Pública or ISP) include pharmaceutical products and foods for medicinal or cosmetic uses.
Imports to Chile of new agricultural machinery is not regulated by SAG and therefore does not require any special certification prior to shipment. However, imports of used agricultural machinery are regulated by SAG and would need to comply with certain laws.
Opportunities
There are three New Zealand technologies that have a unique and sustainable competitive position in Chile:
- Forage Seeds: New Zealand seeds are endophyte fungus resistant. This is a feature required in Chile, which makes them optimal for the Chilean conditions. Current market penetration makes them a solid competitor in the field.
- Electric Fencing Equipment: According to distributors, New Zealand electric fence energizers are very reliable and adapt very well to the power requirements of the Chilean conditions. The fences have a strong reputation for their durability and New Zealand is the current market leader.
- Animal Genetics: New Zealand genetics are tailored to the pasture-based model and produce small animals with very efficient pasture to milk conversion rates. For producers that follow the New Zealand model or want to decrease the size of their cows, New Zealand genetics are positioned very well.
