The Profitability of an Agricultural Project Begins Long Before the First Harvest
As Chilean agriculture undergoes a profound transformation, long-term success increasingly depends on strategic decisions made before planting—from genetics and rootstock selection to orchard design, mechanization, and resource efficiency.
By Sergio De Rojas, General Manager, Agromillora Sur
Talking about agriculture in Chile today as if it were the same industry it was one or two decades ago is not only inaccurate—it is simply wrong. What we are witnessing is neither a challenging cycle nor a temporary crisis. It is a structural transformation that is redefining, from the ground up, how food is produced, what is produced, and, above all, why it is produced.
For years, the model was relatively straightforward: expand acreage, increase volume, and take advantage of market windows. But that paradigm has shifted. Today, producing is no longer enough. Producers must deliver quality, efficiency, traceability, commercial timing, and, in an increasingly constrained environment, profitability. The equation has become more demanding and far less tolerant of trial and error.
The forces driving this change are not new, but they are now more intense and occurring simultaneously. Rising costs of inputs, energy, logistics, and financing are forcing growers to seek more efficient production systems per hectare. Labor has become scarce and increasingly difficult to manage, particularly for critical operations such as harvesting, pruning, and orchard management.
International markets are better informed and more demanding. And one variable has moved from being a temporary concern to a structural reality: water. Water scarcity is no longer a future threat; it is a permanent condition that is limiting production decisions across much of the country.
The cherry industry provides a compelling example. For years, it led a rapid wave of agricultural conversion driven by attractive returns. However, recent developments have demonstrated a simple reality: planting alone is not enough. Location, genetics, orchard design, plant quality, and commercial strategy are just as important as the crop itself. Most importantly, there is currently no other species capable of independently replicating the transformative effect that cherries have had on the sector.
As a result, what is emerging is not a wave of massive crop replacement, but rather a selective and strategic form of reconversion. Some growers are moving away from less competitive crops, while others are modernizing them. Alternatives such as almonds, olives, and hedgerow production systems are gaining momentum—not as passing trends, but as practical responses to the need for mechanization, lower production costs, and more efficient use of resources.
At its core, the discussion is no longer about what to plant, but about how to design complete production systems. In this context, genetics has evolved from a technical detail into a central driver of competitiveness. The variety determines the product; the rootstock determines the behavior of the orchard. A poor decision at this stage cannot be corrected through management practices—it will affect the project throughout its entire productive life.
The same applies to mechanization. It is not an aesthetic choice or a marginal innovation. It is a prerequisite for viability. In a context of labor shortages, the ability to adapt crops to mechanical pruning and harvesting has become just as important as market prices.
At the same time, nurseries have evolved from suppliers into strategic partners. Selling plants is no longer enough. Their role is now far more complex: providing genetics, traceability, quality assurance, technical expertise, and, above all, guidance for decisions that involve long-term investments. In many cases, the profitability and sustainability of an agricultural project begin right there—long before the first harvest.
For years, the model was relatively straightforward: expand acreage, increase volume, and take advantage of market windows. But that paradigm has shifted. Today, producing is no longer enough. Producers must deliver quality, efficiency, traceability, commercial timing, and, in an increasingly constrained environment, profitability. The equation has become more demanding and far less tolerant of trial and error.
This transformation also creates opportunities. Chilean agriculture possesses significant strengths: extensive export experience, highly valued phytosanitary conditions, and an industry that has become increasingly professionalized over time. Yet capitalizing on these opportunities requires something fundamental: a change in the way decisions are made.
The agriculture of the future will be technological, but its logic will also be simpler: efficient, manageable systems designed from the outset to reduce risks and optimize resources.
The goal is not to make farming more complex, but smarter. We believe this transformation presents a remarkable opportunity: to move from an agricultural model based primarily on acreage and volume to one built on efficiency, quality, genetics, productivity per unit of resource, and confidence in the planting material that forms the foundation of every successful project.
