Overview

Chile has favorable geographic and climate conditions for food production. The country’s location in the southern hemisphere means that Chile’s agricultural production is counter-seasonal for the main consumer markets in the northern hemisphere. The extensive network of trade agreements, among them the U.S. - Chile Free Trade Agreement, allows preferential access of Chilean products to approximately 86 percent of global GDP.

The agribusiness sector is under pressure to increase sustainable productivity by efficiently using scarce natural resources, such as water. Chilean agriculture uses approximately 72 percent of the country’s water resources. Improved efficiency of water utilization due predicted scarcity and variable costs of water under Chile’s privatized water industry is a goal of Chile’s agricultural sector. According to the Meteorological Directorate of Chile, in 2024, rainfall deficits averaged 12 percent nationwide, with deficits as high as 100 percent in northern regions like Iquique. In southern Chile, farmers have invested in irrigation projects to maintain production levels during the dry summers, adopting new technologies to facilitate ground perforation at deeper levels and extraction of larger volumes of water, depleting the aquifer. Agriculture and food producers must satisfy well-informed consumers who demand that crops be produced and processed in a sustainable manner. The agricultural industry is implementing Circular Economy (CE) initiatives as a tool to close nutrient loops and reduce negative discharges to the environment.

Over the last several years, labor availability has become a challenge because workers are choosing better paying and less intensive jobs. Considering these labor challenges, a growing need for automated and mechanized equipment has emerged. This presents opportunities for U.S. companies specialized in automation technologies, and after sale maintenance which is often neglected.

Agriculture machinery and equipment from the United States have a reputation for quality and reliability and are designed for intensive and long-lasting use. U.S. advanced technology and innovation are also well-recognized. However, the Chilean market is small and competitive. The United States is Chile’s third most important supplier for agricultural machinery (9%), behind Italy (39%) and China (11%). A drawback for U.S. made machinery and equipment is that it is generally designed for large farms and high production volumes. Most farms in Chile are small with small production volumes that better match European designed and manufactured machinery. Since the cost of energy is one of the highest in Latin America, energy efficient equipment is required for Chile to reduce production costs and remain competitive in the international market.

Table: Market Size Chile Agricultural Equipment Market (US$ Millions)

Units: US$ million, 225 estimate based on first six months of 2025

Source: Global Trade Atlas (HTS 40116100, 40119200, 84193200, 84248100, 84248110, 84248190, 84248900, 84321000, 84322100, 84322900, 84323000, 84324000, 84328000, 84329000, 84331100, 84331900, 84332000, 84333000, 84334000, 84335100, 84335200, 84335300, 84335910, 84335930, 84335990, 84336000, 84336010, 84336090, 84339000, 84341000, 84342000, 84349000, 84351010, 84351090, 84361000, 84362100, 84362900, 84368000, 84369100, 84369900, 84371000, 84378000, 84379000, 84391000, 84399100, 84651000, 84659100, 84659110, 84659120, 84659190, 84659200, 84659300, 84659400, 84659500, 84659600, 84659910, 84659900, 84659990, 84678100, 84679100, 84781000, 84789000, 84792000, 84793000, 84793010, 84793020, 84793090, 85082000, 87011000, 87019011, 87019012, 87019019, 87019090, 87162000, 87169010

Leading Sub-sectors

Water

• Irrigation infrastructure to cost-competitively maximize efficiency of water usage; efficient water management systems and data processing; water saving devices/systems; water flow sensors and control systems and equipment
• Water storage systems/equipment; water transportation systems and supplies (e.g. canal linings, tunnels, and underground reservoirs); large portable water storage systems that can replace water reservoirs; systems for water transportation and storage; rain-collecting systems and storage technologies; data collection and processing

Smart technology

• Smart agriculture equipment: general agriculture machinery that replaces labor; technology and equipment for agriculture processes such as planting, watering, fertilizing; data collection and processing systems/software
• Precision agriculture equipment and accessories to utilize minimum resources and achieve optimum performance with minimum environmental impact
• Agriculture production data collection, sensors, processing/analyzing and transmission equipment
• GPS-guided tractors, drones capable of applying pesticides and detecting diseases, IoT sensors, and online farm-management platforms to optimize inputs and yields
• Technology, equipment, and supplies for crop traceability
• AI farming capabilities: livestock monitoring, driverless tractors, harvesting robots

Machinery

• Mechanization of agriculture processes including fresh fruit harvesting equipment and other machinery to replace labor
• Post harvesting processing equipment: Washing, selecting, packaging
• Energy efficient machinery and equipment (decrease energy consumption)
• Environmentally friendly machinery and equipment (reduce impact on environment and provide higher sustainability)
• Processing equipment with low water consumption requirements

Others

• Natural, non-chemical fertilizers and pesticides
• Natural soil enhancers; natural products for soil and animal health
• Non-chemical aids for agriculture production
• Urban agriculture infrastructure, technology, supplies and systems
• Organic production related technology/supplies

Opportunities

At the start 2025, the Ministry of Agriculture launched its “Chile Feeds the Future” program, a joint initiative between the Ministry of Agriculture and the Inter-American Development Bank, with a budget of $50 million, which involves purchasing equipment and structural improvements at agricultural facilities. This budget distribution and national effort demonstrate the development of further export opportunities. Furthermore, the expansion of desalination projects exhibits increased efforts towards improving irrigation and water efficiency. In 2024, the World Bank backed Chile’s “Just Water Transition” with $250 million in funding, aimed at bolstering watershed capacity and management, rural water access and drought resistance. The Coquimbo Region Multi-Purpose Desalination Plant was announced in 2024, with expected commission in 2029, accompanied by a budget of $350 million.

Chile is open to innovative technologies to replace scarce and high-cost labor and improve water efficiency usage. Automated equipment such as unmanned, GPS-guided tractors (for planting, harvesting, fumigating, and weed removal), and robot/workers are being used, and the market is eager for new and improved generations of robotic equipment. Drones are used to fumigate, apply pesticides, and collect data on soil condition, hydro availability, harvest conditions, and fertilizer presence. Next generation drones with improved capacity to act on detected problems will do well in the market. The current market for specialized and energy-efficient machinery and equipment saves energy and lowers production costs. Chile’s Undersecretary of Telecommunications (SUBTEL) Chile has facilitated the rollout of 5G, which is opening doors for connected precision farming. New developments in “Vertical Agriculture” include hydroponics techniques, utilizing water and nutrients instead of soil. Additional opportunities could be explored in higher efficiency machinery, advanced technology, irrigation systems, natural fertilizers, and soil enhancers.

Chile’s agriculture is focused on sustainability, traceability, and production of products that comply with the standards of the ‘Chilean brand’. Organic production continues to increase and has a good local and international market, increasing opportunities for natural fertilizers and pesticides. Chile’s agriculture production aims at being as sustainable as possible to obtain better value for its exports while contributing to a healthy and sustainable environment. Urban and vertical agriculture are nascent, but there are opportunities for those systems and products to be introduced.

Trade Shows

• Espacio Food and Service, September 30 – October 2, 2025, Santiago, Chile: Espacio Food and Service (EF&S) is Chile’s major food show and the second most important professional food fair in Latin America. Considered a gateway to the Latin America market, EF&S draws key industry representatives from the hotel, restaurant, and institutional sector as well as supermarkets and fast-food chains. More than 20,000 visitors attend EF&S annually. Best market prospects include poultry, pork (chilled/fresh), beef, cheese, healthy foods and beverages, craft beer and spirits, ready-made foods, snack foods, cereals, value-added products, fruit juices (orange, grapefruit), and animal feed.
   
• Expo Chile Agrícola, November 5 - 6, 2025, online event: Organized by the Ministry of Agriculture, this event will take place online. The show brings together private and public agriculture sector players of all sizes to facilitate interaction between agriculture related suppliers, farmers, universities, and international entities.
   
• Sago-Fisur, November 2025, Osorno, Chile: Sago-Fisur trade show focuses mainly on dairy, livestock, and regional fruit production. The event is attended by suppliers, distributors, and service providers related to the agriculture sector, and includes technical seminars, and an exhibition of cattle and horses. The Chilean Association of Slaughtering Plants organizes a special seminar on the subsector.
   
• Aqua Sur, March 2026, Puerto Montt, Chile: Aqua Sur has become the meeting point for the Chilean and international aquaculture industry, bringing together supply and demand of this important industrial sector of Chile. The event aims to reaffirm Chile’s key role in the global salmon industry, show the development of local goods, products and services focused on the industry, introduce innovative technologies to the market, exchange experiences, technologies, and international developments with the Chilean industry, and enhance the industry’s sustainability.

Resources

• Ministry of Agriculture (MINAGRI)
• Oficina de Estudios y Políticas Agrarias (Office for Agricultural Policy Studies, ODEPA)
• Servicio Agrícola y Ganadero (Agriculture and Livestock Service, SAG)
• Sociedad Nacional de Agricultura (National Association of Agriculture, SNA)
• Instituto de Desarrollo Agropecuario (Institute of Agriculture Development INDAP)
• Corporación Nacional Forestal (National Forest Agency, CONAF)
• Asociación Chilena de Riego y Drenaje (Chilean Association of Irrigation and Drainage, AGYRD)
   

For additional information, please contact U.S. Commercial Service Chile Commercial Specialist Macarena Marin.