TCI 2016 Horticulture in Central Chile
•Download as PPTX, PDF•
0 likes•248 views
By Ines Sagrario presented at the 19th TCI Global Conference, Eindhoven, 2016
![Titel presentatie
[Naam, organisatienaam]
Working Day - Track: Food clusters
Food cluster Xchange worldwide
Inés Sagrario
Horticulture in Central Chile](https://image.slidesharecdn.com/tci2016working10novinessagrario-161115120110/85/TCI-2016-Horticulture-in-Central-Chile-1-320.jpg?cb=1479211628)
Recommended
Recommended
More Related Content
Viewers also liked
Viewers also liked (14)
More from TCI Network
More from TCI Network (20)
Recently uploaded
Recently uploaded (20)
TCI 2016 Horticulture in Central Chile
- 1. Titel presentatie [Naam, organisatienaam] Working Day - Track: Food clusters Food cluster Xchange worldwide Inés Sagrario Horticulture in Central Chile
- 2. 2 Horticulture in Central Chile or The Story of the Ugly Duckling Ines Sagrario · TCI 2016 - Eindhoven
- 3. 3 Once upon a time in a far far far away country… • OECD member • 16 million people (6 million concentrated in Santiago de Chile) • $24.000 GDP per capita • Gini coefficient: 0.50, although little extreme poverty (3%) Chile
- 4. 4 Chilean success: fruits No. 1 exporter of fruits in the Southern Hemisphere
- 5. 5 … In the time of smart specialization strategies and innovation, in a small region called O’Higgins, just South of Santiago de Chile… • 9.000 growers • 27.000 jobs • 10-12.000 hectares • … but very limited exports
- 6. 6 ? • Fierce competition • Cost focused • High risk • No negotiation power VOLUME BUSINESS 10-15% 35-45% 40-50% Basic produce
- 7. 7 What can I do if I am a small scale grower?
- 8. 8 Growing urbanization Higher life expectancy Increase in per capita income Women in the workforce and long office hours Health conscious Macro-trends Trends in food consumption Indulgence Convenience Social & environmental impact
- 9. 9 Catering to these new trends can be an interesting business… 30% 30% 40% Specialty produce
- 10. 10 Clean production & full produce variety Product innovation & technology transfer Market intelligence New marketing & distribution channels … as long as we improve some important areas...
- 11. 11 One size fits all doesn’t work in agriculture: analyze your strengths and global trends, and identify your opportunity for competitive advantage and creating value “Small is beautiful”; there are great opportunities for small producers to capture market niches, and they can add much more value through innovation than container loads of mass products Identify new paths to market; reinventing business and distribution models, involving news players in the business is key to success in an ever-changing global food industry Takehome
- 12. 12 www.competitiveness.com Spain: +34 626163032 Brazil: +55 11 32306405 ines.sagrario@competitiveness.com Thankyou Dankje
Editor's Notes
- Once upon a time, in a far far far away country called Chile… Who knows something about Chile? It is a member of the OECD, so as such is considered a “rich” country More than 4000 kms long, it is not very densely populated. 16 million people live in Chile, of which 6 million are concentrated in its capital city, Santiago. GDP per capita is decent, at 24K USD, but it has a high Gini coefficient (OECD average is 0.31) signalling high income inequality, although not many people are extremely poor in Chile... Chile has a very open economy: free trade agreements with 62 countries (representing 85% of world GDP), where more than 50% of its exports come from mining (copper).
- But the real Chilean success, what they are most proud of, is their fruit. Taking advantage of the seasonality advantage they have in the southern hemisphere, they have become in a couple of decades the No.1 exporter of fruits in the Southern Hemisphere. As soon as it starts getting cold, chances are that most of the fresh fruit you are eating in this part of Europe comes straight from Central Chile…
- So not too long ago, the so-in-vogue “smart specialization strategies” were eagerly adopted by the government officials in Santiago, and they gave order for each of the 15 regions in Chile to choose which sectors they wanted to prioritize in order to improve competitiveness and innovation… In a small region called O’Higgins, just South of Santiago, they had 3 main areas of activity: mining, fruits and... Horticulture! The different representatives of public authorities in the region got together and they decided that mining didn’t need any extra help (it was already the country’s No.1 exporter and many support programs nationally had been catered to improve its performance). They considered fruits, but again realized that the large fruit producers in the region were already some of the best in the world and they had been growing steadily over the past decade. So they finally turned their eyes to the produce growers, generally small scale production of very basic produce, like onions, garlic, tomatoes, pumpkins, etc. but which represented 27K jobs – more than mining in the region.
- When all the different stakeholders in the region got together to start analyzing the sector, they all had high hopes that this would be the next export hit, conquering new markets by taking advantage of their counter-seasonality… Unfortunately, their current position was very far from reaching that dream. Their small scale producers were in the business of selling basic produce, facing fierce competition from their neighbors, and depending on the price fixed by shrewd intermediaries that came to buy the produce directly from their fields. In a cost-based business, the grower often only received about 10-15% of the total price paid by the consumer in the supermarket or the open markets. This was a volume business, but none of them could really play in that game...
- If we were in a fairy tale, the growers would have probably visited a witch who would have looked at a crystal ball to tell them the future. But in this case, they used strategic analysis tools, looked at trends and understood that they needed to rethink their dream for the development of horticulture in the region.
- There are a number of macro-trends that have changed the world in the past couple of decades, but specially there are key trends in food consumption that are changing the rules of the game and/or opening new opportunities. There is definitely a greater concern for our health and how it is affected by what we eat. Consumers are also more aware or concerned about the social and environmental impact of their purchasing decisions. All this, without giving up our hedonism, and wanting to indulge ourselves very regularly, and as conveniently as possible. Obviously all the health conscienceness is very positive for higher consumption of greens. But is it just “any greens”?
- There is no “one way” to raising competitiveness and prosperity in agriculture; you need to analyse your strengths as well as global trends, and identify your specific way to build a competitive advantage and create more value. “Small is beautiful”; there are great opportunities for small producers to capture market niches, and they can add much more value through innovation than container loads of mass products. Identify new paths to market; reinventing business and distribution models, involving news players in the business is key to success in an ever-changing global food industry. Reaching a common vision for a cluster is key in order bring about real change in the way the public sector encourages greater competitiveness, innovation and raises prosperity in a region.