Chile's agricultural sector (including forestry and fisheries products) now accounts for over 35 percent of total export earnings. Direct government support to export promotion was estimated at $10.4 million. Private sector contributions to the Export Promotion Fund and to the Chilean Exporters Association are estimated at $7 million.
In general, export promotion programs are carried out through the government agency, PROCHILE, which had a limited budget of about $10 million in calendar year 1995. PROCHILE's operations are divided into 10 sections, of which 3 are related to the agricultural complex. However, although it is difficult to break out expenditures by commodity, $3.3 million were estimated to apply to agricultural products. PROCHILE's focus is increasingly directed toward new or emerging markets, particularly in Latin America and Asia. PROCHILE's activities benefit all agricultural products. PROCHILE provides information and trade leads to exporters; conducts trade missions; and manages Chile's participation in international trade fairs. PROCHILE activities include participation in trade fairs, trade missions and international seminars. From its general budget, PROCHILE operates 35 trade offices abroad, of which four are located in the United States. In addition, PROCHILE operates 13 offices in Chile to provide local industry with improved access to the export market.
The government of Chile initiated an Export Promotion Fund for agricultural export promotion in 1995 valued at $10 million. In 1996, this fund was financed at $7.1 million. The fund provides grants for export promotions. Agricultural products that benefit from the fund include fresh fruit, agroindustrial products, wine, and processed foods. The government expects the private sector to contribute an additional 50 percent each year to fund these activities. This implies that industry contributions to the fund should be $7 million for 1996.
Among PROCHILE's agricultural projects thus far are generic promotional campaigns for fruits in the United States, the European Union and Japan. The latter included campaigns promoting kiwis and grapes - until recently, the only two fruits permitted access into Japan. Other promotional campaigns featured wines in Canada, Latin America and the United Kingdom. In the United States, PROCHILE undertook a campaign to cooperate with local supermarkets that featured radio advertisements promoting both the Chilean fruit and the supermarkets.