Santiago, Oct. 25 - Chile's wine exports surged 30% during January-September, compared with the same period a year ago, to $715.6 million in terms of value, the Chilean Agriculture Ministry's Office of Agrarian Studies and Policies, or Odepa, said Thursday.
Chile is one of the Southern Hemisphere's top wine producers, with much of its output destined for foreign markets because of its small domestic market.
The so-called designation of origin wines, including such well-known varieties as Cabernet Sauvignon, Merlot, Chardonnay, Sauvignon Blanc and Carmenere, have a higher added value than bulk wine exports.
In terms of volume, 230 million liters of designation of origin wine were exported during the first nine months of the year, a 23% increase from what was shipped in January-September 2006, according to the Odepa.
According to Odepa director Reinaldo Ruiz, the nine-month results confirm that Chilean wine exports are not only picking up in terms of volume, but that international markets are "recognizing the quality of Chilean wines, which is reflected in the higher prices paid to exporters."
While exporters are concerned over losing competitiveness abroad, in light of the Chilean peso trading at eight-year highs against the U.S. dollar, wine makers are maintaining their competitiveness "on the higher prices paid at the countries of destination," according to Ruiz.
The U.K. and the U.S. were the main destinations for Chilean wines, receiving 21% and 14%, respectively, of total exports during the nine-month period. Other major destinations included Brazil, Germany, the Netherlands and Canada, the Odepa said.
In recent years, wine makers have opted to produce higher-quality wines to venture into more markets abroad.
This year, according to Odepa's estimates, designation of origin wine exports will likely top $1 billion.