MercoPress. South Atlantic News Agency

United Kingdom main market for booming Chilean wine industry

Chile's wine and fish exports for the first eight months of 2007 increased a significant 34% and 12% respectively compared to the same period last year.

Wine exports the first eight months were valued at 645 million US dollars, with total volumes up by 27% to 208 million liters, according to figures from Chile's Agrarian Studies and Policies Office (ODEPA). United Kingdom (21%) and United States (14%) remain Chile's main wine clients. Wine experts say Chile's success is the result of a number of factors, including increased quality, greater product diversity and world market factors. Chile has also benefited where its competitor Australia has suffered. Australia, a top exporter to the North American market, suffered both a frost and a drought during its most recent wine harvest, resulting in a 30% drop in wine production. Still, despite the success, Vinos Chile president René Merino warned that profit margins are getting smaller which especially affects the smaller wine producers. Merino attributed this development to increased production costs and the low value of the dollar, causing Chilean wine to be more expensive abroad then ever before. Unlike wine exports, Chile's salmon exports are largely unaffected by the low dollar. Salmon exports from January to July increased by 20% to 1.4 billion US dollars, while the total volume of exported salmon increased by 12% over the same period, according to Chile's Chamber of Commerce. Continuing strong demand for Chile's salmon have kept prices high. "Even if we export less salmon (in tons), the value in US dollars (despite the unfavorable currency rate) would still increase," said Salmon Chile director Rodrigo Infante. Japan remains Chile's main market for salmon, importing 39% of the country's pink fish. The United States is second with 30% of Chile's salmon exports. The positive salmon export figures come in spite of lingering fears about the discovery of the salmon disease Infectious Salmon Anemia (ISA). The Santiago Times