Chile Prunes Association and Rising Sun Chile seal an agreement to provide advice on project evaluation and search for financing sources for partners

Published Aug 5, 2024

Tridge summary

Chilean fruit producers are facing a surge in electricity bills due to rate increases and existing debt, potentially impacting profitability. A medium-sized plum producer with technical irrigation spends about $700,000 in electricity per month, which can rise to $2 million with dehydrating ovens. In response, Ciruelas Chile A.G. and Chileprunes are advising partners to explore green credit financing for solar projects to reduce energy costs and carbon footprint. These credits, with terms up to 8 years and initial amounts based on 10% of sales value, can be complemented with subsidies. Rising Sun Chile is developing solar projects for producers. The company believes that self-consumption of solar energy can reduce electricity rates by 40-60%. The union is also focusing on sustainability and diversifying markets, especially in North America and Europe, where higher prices are paid for products that meet sustainability standards.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As of July, an increase in electricity bills has begun to be recorded, after the unfreezing of the rates that were established in 2019 and the current debt with the electricity supply administrators. Thus, the operating costs and margins of fruit producers will be directly affected, for whom lower energy and water consumption are permanent factors of concern in recent years. According to the Chilean Plum Association, Chileprunes, for a medium-sized plum producer (30 hectares), which has technical irrigation (pumping), the average monthly cost of electricity is about $700,000, a value that can skyrocket. to about $2 million if there are dehydrating ovens. This is the profitability of 2-3 hectares per year. Given the concern about the impact on global competitiveness due to increases in electrical energy in the European plum producing sector, Jesús De La Riva, president of Ciruelas Chile A.G., and Thomas Holmes, sales team leader at Rising Sun Chile, sealed an agreement that ...

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