www.cortahojas.com-/ Exchange rate fluctuations in recent weeks have complicated Chile’s iconic ambassador. In the first half of last year, the average dollar value was $ 689.38, while in the same period of 2017 it was $ 660.40, which translated into a 4.2% drop in the dollar. This drop has increased in the first months of the second half, as the US currency is at $ 624.50.
In the case of other markets, such as the British and the European, the exchange rate has also been a constant concern. For example, the pound sterling fell 12.14% against the dollar, comparing the first six months of 2016 and 2017. Meanwhile, the euro has fallen 2.98% against the US currency, by contrasting the first half of 2016 and 2017.
Chilean wine producers are projecting a positive second half for the industry, but they call for caution, as the exchange rate is still low, which is a problem for any export sector, since the fall of the dollar directly affects to the income of the vines.
The positive
Although the first half was complex for the industry, exports were positive. Bottled wine grew by 4.4% in volume and 3.3% in value. The Chinese market grew by 31.4% in value and ranked first in Chilean export wine destinations. Brazil, which grew by 22.7%, and Canada, also surprised.
What’s coming
As a result of the higher costs and the fall in the exchange rate, wine exporting companies are promoting strategies to increase prices in the premium segments, because there is greater brand loyalty.
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