Logistics Middle East
Carlos Salas, trade commissioner of Chile in Dubai discusses the huge successes the country is having - exporting their nuts and dried fruit to the UAE
Carlos Salas, Trade Commissioner of Chile in Dubai discusses the huge successes the country is having exporting their nuts and dried fruit to the UAE
ProChile is the institution of the Minis- try of Foreign Affairs of Chile, in charge of promoting the exportable supply of Chilean goods and services and contributing to the development of the country through the internationalisation of Chilean companies, foreign investment, tourism and the promotion of the country’s image, which is achieved through a national and international network of specialised people committed to that mission.
“We have a network of 16 Regional Directorates and 56 Commercial Offices that are strategically located in the most important markets around the world to support national exporters to facilitate the internationalisation process of Chilean companies that export or have export potential,” said Carlos Salas, trade commissioner of Chile in Dubai. “Thus, as ProChile, we contribute to the development of the country so that our products and services are not only recognised for their quality, but also for their origin and other important attributes of our country, such as its people, its incomparable geography and culture.”
Exporting to the UAE
Nut exports are perhaps the most notable amongst the Chilean export shipments. In 2018, more than $570 million dollars of nuts were exported to more than 70 countries. Figures for 2019 show that by September 2019 the figures had already surpassed $506 million.
The walnut has undoubtedly become Chile’s star performer, topping $436 million dollars during 2018, hazelnuts and almonds follow closely behind.
“The UAE has become a key player for Chilean nuts exports, especially for walnuts in shell. In 2018, it was the fifth largest market, worth more than $26 million dollars, however in 2019 it witnessed incredible growth and is expected to double the value, as of November 2019, the UAE was the third largest nut export destination worth $44.4 million,” said Salas.
The UAE is an important market for Chile due to its history, commitment, and strategic location as a gateway to the rest of the MENA region.
“Undoubtedly though, distance represents one of the most relevant challenges. To begin with, we are separated
by more than 14,772 kilometres which is why we are in talks with some shipping companies to develop more direct routes with fewer days of travel in order to reduce transport times and costs,” Salas noted.
“In addition, competition is becoming increasingly intense in terms of price, due to countries with larger production volumes making their export values more flexible thanks to economies of scale. Finally, Chilean exporters need to be prepared to not only enter the UAE, but also the Middle East region. Understanding the shipment process is a key element of our ProChile offices in these countries as they guide the exporters and prepare them not only to enter these markets, but to stay.”
Ultimately, Chile hopes to increase its presence in the UAE. Chilean production will continue to grow in the next few years with a focus on Dubai, which is an attractive market for Chilean nuts and witnessed growth from 7,600 tons exported in 2018, to more than 16,000 tons exported during 2019.
“We know this is a key destination in the region due to its function as a logistics and distribution centre for the area, which is why consolidating our presence here is crucial,” stated Salas.
The distribution structure of nuts in the United Arab Emirates is quite simple and utilises an agent, importer, and distributor model, with the agent in charge of the local distribution. The most common form of exports, and therefore generates the largest volume, is that which is generated jointly between the producer and the exporter in a production programme for each season.
This work involves technical management, quality aspects of the fruit and all the logistical support for export.
“Before reaching the consumer, our products are distributed in stores specialising in fresh fruits and spices, providing their customers with high quality products at relatively affordable prices. This includes mini-markets and grocery stores, where the products are for sale to the local buyer, supermarkets, and of course the hotel chains, restaurants and cafes with which we also do business, noted Salas. It’s very important for Chile to grow in the markets to which it’s exporting, but also to diversify those exports. This will allow its producers and exporters to enjoy better returns, invest and grow, which goes a long way in supporting the growth of the Chilean economy.
“In addition, we want to strengthen our ties with the UAE to increase commercial exchange, with a focus on investment,” stated Salas.
“Chile is a year-round F&B supplier. In the last year we sent more than 600 forty foot containers of walnuts from Chile to UAE so there are many players within the logistics industry that handle all market needs.”
Chilean food products have a leading role in international markets.
“We are number one in dehydrated apples and the world’s third biggest exporter of raisins and shelled walnuts. This year, ProChile is particularly happy to participate in the Expo 2020. This has unparalleled opportunities to show the wonders of our country, sharing with the world, and particularly the Middle East, our commitment to this market where we want to strengthen ties, and showcase the opportunities we have to do business,” said Salas.
The UAE has become a key player for Chilean nuts exports, especially for walnuts in shell. In 2018, it was the fifth largest market, worth more than $26 million dollars, however in 2019 it witnessed incredible growth and is expected to double the value, as of November 2019, the UAE was the third largest nut export destination worth $44.4 million.”
CARLOS SALAS, TRADE COMMISSIONER OF CHILE IN DUBAI