The Chilean fruit industry is in the spotlight for foreign investors. Last Thursday, Diario Financiero revealed that the Californian company Frutura is about to close the purchase of the Chilean exporter and producer Giddings Fruit; that the same US firm bought Subsole, the leading Chilean table grape company; that the Canadian PSP Investments purchased almost half of Hortifrut; and that an Arab Emirates fund had participated in the purchase of the Chilean Unifrutti.
Juan Pablo Subercaseaux, an academic at the Catholic University (UC) and specialist in Agricultural Economics, stated that many international capitals and funds - especially pension funds - of countries such as the United States, Canada, and some European countries, are focusing on the agricultural sector because of its stability.
An example of this is the Public Takeover Bid on Shares (OPA) that the Canadian pension fund PSP Investments has just closed for the Chilean Hortifrut, the world's largest producer of blueberries.
“The foundation is that there are more and more inhabitants in the world, the hectares are fixed, and we all have to eat. That means it's a scarce resource and, therefore, its price will go up,” he summarized.
Osvaldo Errázuriz, head of the Agricultural Area of GPS Property, agreed and pointed out that the sector “is seen as a safe option to protect capital”. The funds look for long-term investments, with a long curve, so the agricultural sector is an ideal option for them. Thus, the turbulent global economic landscape and local political contingencies do not frighten those capitals, Errazuriz added. “Chile is still attractive to foreign investors,” he stated.
Source: terram.cl
