MercoPress. South Atlantic News Agency

Kiwis opening dairy farms in Chile

Even though Chile is an major exporter of kiwis, a handful of imported kiwis are in the country to stay. In this case it's the people, not the fruit who have found a home on dairy farmland in Chile's southern Region X.

Facing rising property prices and limited opportunity on the Asian side of the Pacific, several New Zealand farmers have invested in Chile or moved here entirely, bringing with them many years' experience in one of the world's most productive dairy-farming countries.

"Many are recognizing the opportunities that there are in South America and particularly in Chile," says Michael McBeath, president of Chilterra, an organization that assists Chilean dairy farmers and now has begun to work with New Zealanders who want to relocate to the area.

Several factors lead New Zealand growers to leave their island for greener pastures on this side of the globe. Most obviously, the price of land is important, with good agricultural land in southern Chile costing between $2500 and $4000 per hectare, about a quarter of the price in New Zealand.

Other points also tilt the balance towards Chile. Labor rates here are less than half those in New Zealand, and many kiwis hope to introduce their dairy techniques that can raise milk production from the current Chilean average of 5,600 liters per hectare to the 9,900 liter per hectare average typical of back home.

New Zealanders currently farm more than a thousand hectares in Region X. But many more are expected now in the wake of the November 8 inauguration of the P4 trade agreement between New Zealand, Chile, Brunei and Singapore. Another contributing factor: the New Zealand consortium Fonterra controls 56.85 percent of Soprole, giving kiwi farmers an instant connection with Chile's largest dairy company.

"I am sure that with time we will see more kiwis here. The majority will be in joint ventures with local investors. Those who come individually will be young couples because, for them, it will be easier to adjust to a new culture and a different language," said McBeath. The Santiago Times - News about Chile