Chile’s largest grower and exporter of tables grapes Río Blanco is considering focusing its investments in Peru, where the effect of the tanking U.S. dollar has been diluted by government action, Chilean newspaper La Tercera reported.

Quoting the company’s General Manager Carlos Barros, the report said Río Blanco is seeing its margins shrink due to the drop in the value of the dollar this year. Moreover Barros said that the company will not invest  in expanding its infrastructure or in new machinery in Chile, and that Peru provides a more attractive alternative.

“Peru has great potential and the authorities are doing something to contain the appreciation of their currency,” Barros said.

The investment could focus on buying more land suitable for grapes, although Barros would not specify which region the company is looking into. Currently Río Blanco produces some 500,000 boxes of table grapes per year and manages around 50 hectares of land.

Chile’s peso has gained strength against the dollar, dropping to 484 pesos to the dollar as of October 11. Last year the dollar ranged between 520 to 540 pesos. Export groups have called on the central bank and President Sebastian Piñera to intervene.

Source: www.freshfruitportal.com