Chile aims to be one of the world's 10 biggest agricultural exporters and to become a producer of bio-fuels in the medium term, new Agriculture Minister Alvaro Rojas told Reuters in an interview.

Chile is known as the world's biggest copper producer, but the new government of President Michelle Bachelet wants to boost agriculture, which has big growth potential, Rojas said Friday.
"Chile has the environmental, productive and business conditions to play a significant role in agro-industry. It is perfectly feasible in the long term to get close to 10th place," Rojas said.

The government estimates that Chile's surging exports of fresh fruit, wine, farmed salmon and fish meal already put it at 17th place among world agricultural exporters.

Last year Chile's agricultural exports were worth US$8 billion, and if it maintains a 6 percent growth rate over the next 10 years that number could double, the minister said.

Chile's free trade pacts with North America, the European Union, Korea and China have opened new markets for its traditional products and have also boosted nontraditional products like cranberries, olive oil, avocados, pork and ostrich meat.

"In 10 more years the country will have all of its free trade agreements fully phased in, without restrictions for its products in Europe, the United States, Canada and other countries," Rojas said.

But the minister said that Chile also needed to focus on technological innovation and create a new country image to promote itself.

POTENTIAL BUSINESS

One area for potential advance, and where Chilean agriculture could perhaps mimic successes in Brazil, is in the area of bio-fuels.

"There is a new area where agriculture could give a lot, which is in the area of energy production through agro-energy and bio-energy," Rojas said.

Chile imports about 85 percent of its annual fuel needs, while its electrical energy supply is restricted by the amount of natural gas it can buy for generation from Argentina.

"With current petroleum prices, which it seems will be around for some time, these new alternatives for energy production are interesting," Rojas said.

Farm products and sugar producer Iansa signed an agreement in March with Chilean state oil company Enap to work on the development of bio-fuels like ethanol from sugar cane.

Rojas said livestock was another potential growth area for Chile.

Story by Antonio de la Jara