Cristián Allendes, chairman of the National Federation of Fruit, FEDEFRUTA, voiced his concerns last Tuesday in a meeting with Rodrigo Vergara, governor of Chile’s Central Bank. Allendes is worried about the on-going deterioration of the country’s exchange rate during the last two months.
“We are dealing with a cumulative drop of 9% in the last year,” he states. “In the fruit sector, this comes down to a 400 million dollar loss. Adding the other agricultural sectors, we come to a loss of over 800 million US dollars. This, of course, leads to unrest, not just with us, but with authorities as well. The fruit sector generates over 450,000 jobs.”
The meeting between FEDEFRUTA and the Banco Central lasted about an hour, after which the bank indicated it was open to possibilities, but wasn’t ready to make any promises. During the meeting FEDEFRUTA’s chairman brought to attention the fact that 60% of expenses in pesos are wages, while the dollar keeps on falling. Allendes spoke of “a complicated situation.” He added that many of the recent investments were done in the long haul, and it’s very hard for the sector to anticipate future returns.
Other participants of the meeting were Ramón Achurra, chairman of Frusexta and chief of FEDEFRUTA, Juan Carlos Sepúlveda, general director of FEDEFRUTA and Luis Oscar Herrera, general manager of the División de Estudios (Studies Division) of the board.
Source: FEDEFRUTA