May 10, 2007

Chile's Wagyu beef exports seen to reach US$5 million

Chilean Wagyu beef exports in 2007 is projected to arrive at US$5 million, significantly up from the $250,000 exported in 2006.

According to the Chilean Wagyu Cattle Association, the medium term goal is to export US$70 million worth of Wagyu beef.

Since 1999, Chile's cattle breeders have substantially spent in infrastructure and genetic imports from Australia and US to build up a Wagyu herd of 20,000 head in 2006. Wagyu slaughter during 2006 totalled 1,500 head, while for 2007 and 2008, while butchery is forecast to reach 4,000 and 7,000 head, respectively.

Chile's strengths include its "FMD free without vaccination" and "BSE free" status and has built a positive marketing and production image in markets such as EU, US and Japan.

Chile intends to continue focusing on the EU, Japan and the US over the medium term assisted with free trade agreements with these countries. Chile has zero percent tariff in the EU and the US. It has a 38 percent tariff in Japan which will eventually decrease to 0 percent.