David del Curto purchase could mean investment increase in Chile
In January a new mark was made on the map of the fruit sector that, according to experts, will increase investments in 2021. Hancock Natural Resource Group (HNRG), the U.S. investment group belonging to Manulife Investment Management, acquired a majority stake in the Chilean company David del Curto (DDC).
José Miguel Fernández, founding partner and general manager of Sembrador Capital, told FreshFruitPortal.com "HNRG is looking to build an investment platform in Chile and [the fact] that they are entering the country is excellent news. It means that Chile will continue to be on the radar of national and international investors.”
Fernández emphasized “It is a novelty that they have decided to invest in an exporting company. Institutional investors prioritize production products, not commercial projects.”
“It is a signal gives more trust to the Chilean industry and reflects that international figures want to position themselves in the country,” he added.
HNRG is one of the specialized investment groups that contribute the most to agricultural investments in the world, so its increased presence in the country will favor the Chilean economy, which has registered declines in growth.”
Alejandro Alarcón, professor for the Faculty of Economics and Busines at the Universidad de Chile commented "HRNG’s purchase is good news for all sectors and shows that there is interest in Chilean companies with long histories; and that there are good deals."
"There are many foreign investors that are interested in Chile, which will increase investments and the growth of the country,” he said.
Work in progress for the fruit and vegetable industry
Whether buying operations will multiply with time depends on the actions and positions that fruit companies take.
José Miguel Fernández "It is a work in progress. Those who want to target institutional investors will have to make changes.”
He added that "All sectors are attractive to institutional investors, the companies that decide to incorporate and make adjustments are going to make the difference. What will make the difference will be the companies that participate in this sector.”
To this, Gustavo Díaz, an economist for the Instituto Libertad, added "Foreign funds have realized that the Chilean market is serious, responsible, and has low levels of uncertainty, which will allow operations to increase with time.”
"These investments are associated with a higher capital outlay, which allows us to think that the local industry will be strengthened," said Díaz.
Chile leads fruit exports
David Del Curto, S.A. (DDC) is a Chilean fruit exporter that used to be the property of the family office of Teresa Solari. It is the leader in fruit production, packing, and exporting It has more than 10 different categories of fruit, in 11 fields and manages one of the largest nurseries in the country.
In this scenario, Chile is the primary fruit exporter in the southern hemisphere as well as the world leader in table grape and blueberry exports.
The Office of Agrarian Studies and Policies stated that the sector produces almost five million metric tons of fruit, of which 2.6 million are exported as fresh fruit, generation $4 billion every year and contributing 39.2 percent to the GDP.