MercoPress. South Atlantic News Agency

Magallanes farmers will have own abattoir.

A group of farmers from Magallanes Region have decided to build a new abattoir putting an end to the controversy over the coming lease of a Chilean government managed plant.

Originally Magallanes farmers had requested that they have full access to the Sacor abattoir in Porvenir fearing tempting "monopolistic practices" since Magallanes and Tierra del Fuego have another only private plant licenced to export to United States, Europe and the rest of the world.

"With two private plants non-related to farmers interests, it seems obvious what could happen and who would be the main looser", a Magallanes Region farmers association source reported to Punta Arenas press.

With this in mind and the fact that all appeals to the Chilean Antimonopoly Committee and even the Judiciary branch had been exhausted, a group of Magallanes farmers from Punta Arenas Profo Wool & Meat decided to establish a new abattoir in Porvenir where they already purchased a ten acres plot.

"Our commitment is that by 2005/2006 we'll have an abattoir working for the farmers and not the farms working for the abattoir", indicated Juan Gysling from Profo Wool & Meat, adding that a New Zealand company has already undertaken the feasibility study of the project.

"We're talking of a 2,5 million US dollars investment and I imagine the plant will be finally purchased in New Zealand to the highest standards demanded by the US and the European Union", said Mr. Gysling who was particularly critical of the Chilean government.

"They are committing a serious mistake: private ownership of the abattoir does not ensure sustainability for the farming industry, which is our objective. We've seen what happened at the other side of the border. All the promotion benefits that currently exist for the Region someday will be over and that is when you will need a sound fully integrated industry, farms and abattoir", explained Mr. Gysling.

Apparently the presentation of the abattoir project before the Regional Council had a unanimous approval, plus the support from "all our regional elected representatives, Deputies and Senators".

Carlos Mladinic who is president of the Chilean System of Government Companies and who is sponsoring the privatization of Sarcor when asked about the Magallanes farmers project said that "this clearly proves that our presence (government) is not needed in the industry if there are private investors willing to undertake this enterprise".

"What is clear is that it's no government business to kill sheep, our business is to promote and attract as many private investors as possible", stressed Mr. Mladinic who was severely criticized in Punta Arenas for rejecting the farmers' original proposal of taking over Sarcor.