A positive chicory season closed Beneo Orafti Chile, reaching the second highest yield in its entire history (18 seasons), according to Alberto Cañete, agronomy manager of the European capital firm, whose plant is located in Pemuco.
He explained that in the 2022-23 season an average yield per hectare was achieved of 57.3 clean tons, surpassed only once, four seasons ago, when it reached 58.1 tons/ha.
Chicory, which is harvested between March and July, from Ñuble to La Araucanía, is the raw material in the production of inulin, an ingredient demanded by the food industry.
Cañete stressed that, despite the fact that the surface goal for the campaign that just ended was not met, since they reached 4,000 hectares (76% of the goal), “it was a season with good results, in which, in addition, we subjected test the plant, because some years ago they were working on expansions of the plant, on a second refinery, on new equipment”.
He also recognized that the heavy rains in June made the harvest work more difficult. “Despite the storms and overflows, we were well prepared, we had field conditions and equipment available to continuously supply the plant,” he recalled.
Campaign 2023-24
On the other hand, he reported that for the 2023-24 campaign a record number of contracted area was reached, reaching 5,900 hectares.
“Since January of this year we began with the contracting process for the coming season, which we are going to start this week, with the first sowings of the year,” said Cañete.
He asserted that for the 2023-24 campaign “we had a very ambitious goal, close to six thousand hectares, given the growth of the market, demand and the expansions that were made at the plant. Never in the history of Orafti had we contracted in Chile over 4,100 hectares”.
He explained that the 47.5% increase in area responds, in part, to the increase in area per farmer, but to a greater extent to the incorporation of more producers. “Without a doubt, the strength lies in incorporating new farmers or those who had stopped planting some time ago and planted again,” he argued, detailing that three seasons ago they worked with 70 farmers, then they rose to 94, then to 106 and, to next season, there are 160, which is also a record.
Among the factors that explain the greater interest of farmers in this crop, the agronomy manager of Beneo Orafti Chile explained that “the price of the previous season was maintained, despite lower costs,” that is, $74,000 or US$92. per clean ton (the producer chooses the currency when signing the contract), which, in practice, translates into higher profitability per hectare.
Asked about the factors that explain this rise in the surface area, the professional reflected that there were several that had an impact. “We have resumed the path of gaining trust and recovering communication with farmers, and this has allowed us to arrive clearly with our offer,” he commented.
“I am convinced that what we offer this year, like last year, are the best conditions for contract farming in the area,” he said, referring to prices, profitability and financing of crops and works irrigation with interest rates lower than the market.
Likewise, he pointed to the difficult scenario faced by other crops: “Unfortunately, the conditions of the farmers in the area, due to the crisis of grains, corn and wheat in particular, have them very distressed, very tight. They bought inputs at a high cost, and although the yields of the grains were good, the price at harvest this season was very low, therefore, the farmer’s margin, for those who marginalized something, was quite scarce and they found themselves troubled”.
