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Chile Farm Investments Endorses Govt Position

Monday, 29 October 2007,

Chile Farm Investments Endorses Government Position On Chile Agricultural Opportunities

After returning from their most recent visit to Chile’s most productive farming region Osorno, Chile Farm Investments Ltd supports Phil Goff’s recent comments regarding the potential for New Zealand to take advantage of Chile’s rapidly expanding agricultural sector and its preferential access through a large network of free trade agreements.

Mr Goff has recently concluded a two week New Zealand Trade Mission to Argentina, Uruguay, Brazil and Chile.

Chile Farm Investments, a New Zealand company is buying farm land in the south of Chile and introducing New Zealand farm management systems, taking advantage of the large investment made by Fonterra, who are the majority shareholder of Saprole, Chile’s largest dairy company, cheap farmland and an abundant labour force.

Hamish Firth, the managing director of Chile Farm Investments Ltd has only positive comments regarding their ongoing investment in Chile:

‘After visiting Osorno, in southern Chile you could be mistaken for thinking you were in prime Taranaki dairy country. Osorno shares similar characteristics to one of New Zealand’s best Dairy producing areas, except the knowledge and know-how are missing meaning only half of the pasture resources in the area are being utilised.’

‘The demand for dairy products continues to increase and as a result the price of suitable land and other inputs is also increasing. In this regard looking for land-suitable, cost effective and government friendly alternative locations around the world puts Chile is at the top of the list.’

‘The current know-how and productivity on Chile farms is like New Zealand farming was like 30-50 years ago.’

‘With dairy land prices in Chile being about 40% of the cost of similar land in New Zealand and labour being abundant in the range of $15-30 per day the opportunity to replicate New Zealand Farming Systems and take advantage of soaring dairy demand is there for the taking.’


Current productivity is best described by the photo taken from Chile Farm Investments’ most recent acquisition “Fondo Donna Maree’.
Given Chile’s extensive range of free trade agreements including the USA and China it is expected the demand for dairy products out of Chile will increase.
A full background on Chile and farming in Chile is available on Chile Farm Investments’ website

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