MercoPress. South Atlantic News Agency

Regional News from Pta. Arenas.

Headlines:Improving lamb breeding; Cholera alert in Santiago; Chilean finances in the red; Free trade agreement with Korea; Farmers' week; Joint Antarctic patrolling.

Improving lamb breeding

Chile's Agriculture Research Institute is looking into the improvement of Magallanes flock with the introduction of three new breeds of lamb that could mean a considerable difference to farmers' income. The research centre called Kampenaike is located in Laguna Blanca 40 miles to the north of Punta Arenas and has been running since 1976. It is exploited as any other "estancia" of the area with 7,600 hectares, 3,000 sheep, 120 cattle, and several other diversification projects from ostrich breeding to innovating with strawberries, rhubarb, gooseberries, artichokes. However all efforts are now concentrated in lamb breeding, particularly since meat has become the main source of income in sheep farming even when wool prices have increased lately. The name of the project is "Adapting and validating a sheep production system for Magallanes". "The current experiment began in 2000 with Corriedale, Suffolk and Finnsheep specially imported from New Zealand. The purpose is to increase the number of lambs per ewe; lambing percentage and heavier animals even if they have to have some food supplement after they are separated from their mothers", says Ruben Lira, head of the Kampenaike station. "The project involves genetics and feeding management, increasing the current 75% lambing, and that's why we are betting in the prolificacy of Finnsheep. More lambs and heavier lambs, and I believe we're moving that way", indicates Mr. Lira. During the current season (2002/03) there was a satisfactory level of multiple offspring, with the required weight, "however, winter conditions and foxes caused losses, but for next season we will be working with full grown ewes and we have all the experience so far".

Cholera alert in Santiago

Chilean sanitary authorities have alerted all public and private health institutions of the country about the possibility of an outbreak of cholera, following the discovery of the cholera vibrio in the Maipo river valley, close to Santiago and an area of rapid development. Public Health Deputy Minister Fernando Muñóz said that inspections, particularly in food outlets and markets will be doubled and recommended the population to consume cooked food and boil drinking water. "We are warning people not to consume ceviche or sushi, both popular dishes, prepared with raw fish", said Mr. Muñoz. Santiago's Public Health Institute reported that samples of water containing vibrio cholerae, the cholera agent, were extracted last January 25th in one of the many water checkpoints along the Maipo river. "So far that has been the only report, which should help us with a prevention contingency plan", said Mr. Muñóz. "Our inspection tours to local markets in the lookout for cholera, typhus and hepatitis have proved negative. We don't want to alarm the population, but we must insist consumers avoid raw vegetables, raw sea food, check the drinking water and please comply with normal hygiene practices such as hand washing", indicated Mr. Hugo Schenone, head of the Santiago Metropolitan Health and Environment Service. In 1991 an epidemic of cholera that started in Peru quickly spread to the rest of the South American continent, with the exception of Uruguay where no cases were reported.

Chilean finances in the red

A slower growth of the economy and a significant drop in the international price of copper, still the country's main export, forced Chile to end the second consecutive year with a budget deficit. According to Mario Maciel head of the Planning and Budget Office, Chile's budget deficit in 2002 reached 0,7% of GDP, an increase over the also negative result of 2001 when it recorded a 0,3% deficit. However it was below the 1% GDP deficit most private consulting firms had estimated. "This can is attributable to a reversion of declining budget income beginning in the second half of 2002 and a concurring decrease in government spending", explained Mr. Maciel. The Chilean economy during 2002 expanded 1,9%, considerably less than the 3% of 2001 and "this can be explained by an adverse international business environment and a depressed domestic demand". The persistent international low price of copper that contribute significantly to the Chilean Exchequer also had its impact. Chile is the world's leading copper exporter. Nevertheless Mr. Maciel offered a positive angle of the second half of 2002. "While in the first half revenue was dropping at an annual rate of 0,8%, in the second half it picked up with a strong 7,9%. Similarly government spending dropped from 7,7% in the first half to just 1,7% during the second half".

Free trade agreement with Korea

The main Chilean business organizations praised the free trade agreement signed by President Ricardo Lagos with South Korea, adding it was a "historic integration landmark for integration with the Asian markets". "This will undoubtedly signal the beginning of Chile's integration to Asian markets", said Fernando Lihn, president of the National Chamber of Commerce. The agreement signed over the weekend in Seoul by the Chilean delegation officially visiting South Korea will become effective thirty days after each country's Parliamentary ratification. "It's a challenge for our economy, since South Korea is one of the leading economies in Asia and among the twelve most dynamic of the world", stressed president Lagos during the official ceremony. Chile and South Korea began negotiations in 1999 and were suspended several months because of discrepancies regarding agriculture. However last October a breakthrough was reached when Korean white line equipment (washing machines and refrigerators), plus Chilean pears, apples and rice were excluded from the understanding. "It's not only strategic for Chile, it will also benefit Chilean consumers that will have access to goods that will pay virtually zero tariff", insisted Mr. Fernando Lihn. The agreement basically excludes South Korean farm produce and Chile's industrial goods, the most vulnerable areas of both countries. South Korea will be eliminating all tariffs of manufactured goods plus 224 farm produce from Chile. Chileans will open their market to over 2,000 South Korean industrial goods in the automobile, computer and machine tool industries that represent 66% of this country's exports to Chile. South Korean farmers protested in the streets of Seoul during the signing of the agreement. The Chilean Industrial Confederation, SOFOFA said the agreement should mark the beginning of the country's technological advance. "This will force all Chilean industries to update and will also mean the transfer of leading technology from one of the most developed countries in the world", underlined SOFOFA in an official release. Bilateral trade in 2002 reached over 1,2 billion US dollars, with Chilean exports totalling 715 million US dollars and South Korean sales 516 million US dollars. In the last six months Chile signed trade agreements with South Korea, European Union (a Political and Economic Association and Cooperation Agreement) and last November closed negotiations for a commercial understanding with the United States.

Farmers' week

Magallanes farmers are organizing the coming Breeders Show to be held in the first week of March. According to Expogama (Exposición Ganadera de Magallanes) organizers this year's event will see the participation of Uruguayan Corriedale farmers, the breed most extended in Uruguay. The show will include a round of conferences with Chilean and foreign experts who will address sheep farming prospects. A shearing contest, horse competition, dogs and cats show and a tentative cattle exhibition will be included in the program, said Claudia Ramírez from the Magallanes Breeders Association.

Joint Antarctic patrolling

Chilean Navy tug "Leucotón" is back in Punta Arenas after concluding last week its month long Antarctic patrolling in the framework of the joint Argentine-Chilean operation. ""Charlie" period is over and now begins "Delta" period under responsibility of the Argentine vessel "Suboficial Castillo". Anyhow we'll be ready in case any emergency occurs", said Chilean captain Carlos Dietert, after handing command to the Argentines. The main purpose of the joint Argentine-Chilean presence in Antarctic waters is in the event of any emergency needing rescue, salvage, contamination control operations. "During these 33 days, 27 sailing, we jointly exercised helping a cruise that supposedly runs aground; pulling a vessel with engine failure; oil spill control and even a medical evacuation, and they were successful and we are satisfied the way both crews responded in the situation", explained Captain Dietert. In its final trip to Punta Arenas "Leucotón" brought along a 32 tons cargo of garbage and debris from Chilean Antarctic bases.