Chile puts fair trade poultry to the test

An agreement has been reached to set up a new partnership in egg production in Chile. The agreement has been recognized internationally because it promotes the welfare of hens and respect for the environment, as well as prioritizing the fair trade system for farmers. The new initiative comes from Ecoterra in cooperation with the Chilean government’s Agricultural Development Institute, INDAP.  Agriculture Minister Carlos Furche, and the executive director of the Foundation for Agrarian Innovation (FIA), Hector Echeverria, attended the official launch.
“This initiative brings together several remarkable features,” said Furche. “First, this is the first example of fair trade certification for egg production in Chile or worldwide. Secondly, the initiative has the dimension of environmental sustainability that is very relevant and, thirdly, it is significant in involving small farmers and allowing them to improve their income.”
The model,developed by Ecoterra,aims to secure economic rights for those who are unable to access large markets using a system that respects all aspects of sustainability. It will be the first organization in Chile to produce chicken eggs certified by the Institute for Market Ecology (IMO) with ‘Fair for Life’certification.
“We have supported and developed this innovative model to bring agriculture closer to the city,” said Echeverria. “There are plenty of people in cities who know nothing about farming but we can all respond to future challenges by bringing together these products and organizations through joint work.”
Free-range systems for chickens have been implemented with success in the United States, Canada, France, Italy, Spain, Germany and Switzerland, where they aim to produce high-quality food using resources sustainably and with respect for the environment. The hens live naturally, without controlled light, temperature or humidity, on organic pasture foraging for feed grains, grass, insects and worms. Birds have 5m² in outdoor space and the range is managed naturally without application of herbicides or pesticides. The low stocking density means that antibiotics or growth promoters are unnecessary in the feed.
“From the beginning, our project sought to produce free-range eggs on a fair trade basis, so the production chain involved small producers working cooperatively,” said Pablo Albarran, manager of Ecoterra. “The project has delivered excellent results, allowing these farmers to earn up to 5 times the minimum income each month. This far exceeds the average income for farm workers – an achievement that was unthinkable before as small farmers are often marginalized and unable to benefits from added value in the food supply chain.”

APA Chile is ordered to dissolve because of collusion

The Defense Court of Free Competition in Chile (TDLC) ordered on September 25 the dissolution of the Chilean Poultry Producers Association (APA), within the expected ruling regarding what has been referred to as the "Chicken Case," denounced by the district attorney's office since November 2011. The case also involves major poultry companies Ariztía, Don Pollo and Agrosuper, which formed a cartel that for 15 years controlled 80 percent of the production of poultry in Chile.
After almost three years of discussions, the TDLC established that "the summoned poultry companies, by demand projections developed in conjunction with the APA, pursued the range in which chicken prices should fluctuate through coordinated definition of a certain level of production."
This was so reviewed by the newspaper Diario Financiero, which also reported on sanctions issued by the same court for poultry producing companies. "The judgment convicted Agrosuper and Ariztía to pay the maximum fine according to law of about US$25 million and US$10 million, respectively. Likewise, the dissolution of the Poultry Producers Association of Chile (APA) was ordered, which acted as coordinator of the cartel. Finally, imposed only to Agrosuper was the obligation to previously consult any operation of concentration in this market in which they participate."
Spokesmen for all entities involved in the Chicken Case (APA, Agrosuper, Ariztía and Don Pollo), simultaneously announced that they will examine the measures and resources to reverse this ruling. Felipe Vial, APA attorney, told Diario Financiero "we disagree with the court's ruling and we will study the legal action to be taken."

'Photo Atlas' tool for poultry health inspection published by Chilean groups

To ensure the safety of poultry products for domestic and foreign consumers, the Chilean Agricultural and Livestock Service (SAG) and the Association of Poultry Producers of Chile (APA) have published the “Photographic Atlas.” The Atlas is an objective tool that can be used to support the health inspection carried out by SAG in poultry slaughterhouses and establishments that follow standards issued by the Chilean Ministry of Health.
According to national director of SAG, Angel Sartori, this new publication "is the result of close work that holds the SAG and APA, in order to ensure high standards of product safety for consumers of birds both in Chile and in the abroad. The SAG has all the technical expertise to develop a document with these characteristics that meet the current requirements of the food industry."
Meanwhile, APA president, Juan Miguel Ovalle, said: "Undoubtedly, this Atlas is an important contribution to the inspection process, allowing us to see the process, avoid unnecessary seizures, adding technical and scientific information to the inspection SAG performs today. It also allows to provide a tool for training new professionals entering the process at a time to correct deficiencies and shortcomings of the system."

Chile pursuing poultry exports to Russia

A delegation of Chilean businessmen and officials traveled to Moscow in order to expand export opportunities from this Andean country, mainly of agricultural products and processed foods – including poultry. In 2013, Chile exported more than US$567 million worth of agricultural goods to Russia, especially salmon, trout, fruits, pork and wine.
The bilateral meeting is part of the agenda defined by the Chile-Russia Business Council of the Society for Industrial Development (SOFOFA) in its first year of activities. Juan Miguel Ovalle, president of Chile-Russia Business Council, said on this regard: "This council was formed to support bilateral economic relations at the government level, promoting trade and investment, in addition to promoting joint actions in energy issues, of information technology and communications, among other topics. Today the focus is given to food exports. Chile, due to its health and safety conditions, is a provider of top quality food, as Russian consumers have already proven."
As part of this visit, a seminar on Chile-Russia Trade and Investment Opportunities was conducted, which served to illustrate the methods of strengthening trade relations and identify business opportunities. This initiative is designed to increase trade and investment between the two countries. The president of the Russian-Chilean Business Council, Alexander Starovoytov, said: "This visit is clearly the beginning of a new stage in the development of our business relationships. We see a government that supports entrepreneurs in their efforts to increase business with the Russian Federation."
In 2013, the average annual interchange between Chile and Russia was US$706 million. In the last ten years, Chilean shipments increased an average of 31 percent per year, while imports from Russia grew at a rate of 10 percent. Among Chilean businessmen in Russia, stands out a delegation of members of the Poultry Producers Association of Chile (APA), a business entity that outlined the day's business approach in its official website.