Performance of the Chilean Wine Industry through Trade Indicators in the Period 2001-2016

WILLMER GUEVARA RAMÍREZ1; CRISTIAN MORALES LETZKUS2
1 Universidad Tecnológica de Chile, INACAP
2 Universidad Católica del Norte, Escuela de Ciencias Empresariales, Larrondo 1281, Coquimbo, Chile

Abstract

Guevara W. and C. Morales, 2018. Performance of the Chilean wine industry through trade indicators in the period 2001-2016. Bulg. J. Agric. Sci., 24 (3): 341–351

The production and commercialization of wine have been two of the most dynamic and important economic Chilean activities. The growth rate of wine was 4% per annum in 2012-2016, with exports of 1853 million US dollars, amounting to 3.09% of total exports. This investigation aims to evaluate the exporting performance of Chile and that of its main international competitors in the international wine market during the period 2001-2016 using the index of revealed comparative advantages; the competitivity of the internal market of wine exporting countries using both the penetration rate of imports and the Constant Market Share (CMS) methodology in the case of the USA market.
The Chilean wine, notwithstanding its loss of competitivity in the US and its modest growth in price, stands out by its revealed comparative advantages, where it is surpassed only by New Zealand. This shows the specialization, importance and solidity of this industry in Chile. The strength of the sector is also apparent by its penetration rate since the internal consumption is satisfied by national producers.

Key words: wine commerce; revealed; comparative; advantage
Abbreviations: Constant Market Share (CMS)

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