(Part 3)
We have seen that Chile is a role model for the Philippines from the standpoint of macroeconomics, the economics of the whole economy. This richest country in Latin America, however, can also be a role model for the Philippines in microeconomics, that is, from the standpoint of individual industries. There are at least two industries in Chile from which the Philippines can learn many lessons: the meat industry and the mining sector in both of which Chile is a global leader.
As the Philippines struggles to attain food security over the long run, it is providential that we are about to sign a Free Trade Agreement (FTA) with Chile, one of the most productive suppliers of meat products to the global market. The Department of Agriculture (DA) has cleared 13 Chilean companies to export beef, pork, and chicken to the Philippines in order to boost food supply stability and protect consumers from price shocks as we have been experiencing during the current year as a result of the high transport costs and shortage of fertilizers caused by the US-Iran war. As Secretary of Agriculture Francisco P. Tiu Laurel, Jr. recently explained: “As much as we strive to produce more food locally, we also need to ensure steady and reliable sources overseas… Recent natural calamities and recurring animal diseases remind us of the importance of securing alternative food supply channels to protect consumers and stable prices.”
This new agreement with Chile will expand the Philippines’ network of global meat suppliers, complementing imports from the United States, Canada, Brazil, and Spain. Our long-term food security strategy should include not only the indispensable objective of significantly improving the productivity of our agricultural sector, but also a broader strategy to diversify sources, prevent supply disruptions, and ensure stable prices in the local market. This is especially crucial in the case of meat products, the ordinary sources of protein, because of the tragic stunting of Filipino children who lack protein in their diet.
The biggest challenge to the Philippine meat industry has been African Swine Fever (ASF), which has affected the industry since 2019. Although hog production grew by 6.4% in the first quarter of 2026 compared with a year earlier, the national swine inventory remains below pre-ASF levels. A good number of small backyard producers have not yet resumed production because of high disease risk and the large capital needed to rebuild their herds. Except for the bullish poultry sector, the Philippines is expected to continue to import pork and beef products in the medium term. Rising incomes amongst Middle-Income households is increasing demand for animal protein. This is especially highlighted by the fact that the Philippines has attained Upper-Middle Income status this year.
The addition of Chile to our possible suppliers of meat products is providential. Chile has one of the most modern and export-oriented meat industries in Latin America. Because its domestic market is relatively small (about 20 million people compared to our 115 million), Chile has become a significant exporter of pork and poultry by focusing on high productivity, strict animal standards, and access to international markets. Its pork industry is its most internationally competitive livestock sector. It raises approximately 5 to 6 million hogs annually, producing around 600,000 to 700,000 metric tons of pork annually. Production has grown steadily over the past two decades through investments in genetics, biosecurity, and modern production systems. One of its greatest strengths is its excellent animal health status. It has constantly maintained high biosecurity standards, effective disease surveillance, and strong veterinary service. In a meeting at the University of Asia and the Pacific on July 25, Chilean Consul in the Philippines, Pedro Picazzo, assured Tony Chua, owner of INFARMCO, one of the leading scientific swine breeders in the Philippines, that one of the benefits of the FTA between the Chile and the Philippines could be a transfer of technology to us of effective means of addressing the swine fever problem.
In fact, closer relations with Chile through the FTA we have just signed may lead to some future transfer of technology. Its outstanding achievements in the pork industry can offer several lessons that are relevant to us, such as:
• developing large, integrated commercial farms linked to modern processors;
• strengthening bio-security to reduce the risk of diseases such as African Swine Fevers;
• improving genetics and feed efficiency;
• encouraging contract growing commercial and smallholder farmers;
• investing in modern slaughterhouses and cold-chain infrastructure; and,
• focusing on value-added processed pork products rather than only fresh meat.
Although these practices already exist in the Philippines, our pork industry may still benefit from some advanced management practices and technological systems developed by their Chilean counterparts. Better still, the closer ties we shall be developing with Chile may lead to some of their large firms like Agrosuper, Coexca S.A., Maxagro, and Commercial AASA taking an interest in investing in the Philippines — singly or in partnership with some of our local enterprises — to serve not only our domestic market but those of our ASEAN neighbors. Agrosuper alone accounts for a substantial share of Chile’s pork exports and operates some of the largest integrated pork production systems in the entire South America.
Another Philippine industry in which Chile can not only be a role model but also a strategic partner is mining. Philippine copper enterprises (like Philex Mining, Atlas Consolidated Mining and Development Corp., and Lepanto Consolidated Mining Co.) can benefit from close ties with their Chilean counterparts. Chile is the largest producer and exporter of copper in the world, accounting for approximately 23% to 25% of global mine production. In fact, copper is the backbone of the Chilean economy. Chile’s annual mine production is about 5.3 to 5.5 million metric tons of copper. Copper products account for about 45-50% of Chile’s merchandise exports. It contributes around 10-15%, directly or indirectly, to the country’s GDP. It employs, directly or indirectly, 200,000 workers.
Among the major companies are Codelco, the world’s largest copper producer and wholly owned by the Chilean government; BHP, which operates the giant Escondida mine; Anglo American; Antofagasta plc.; and Freeport McMoran. The major mines are Escondida, the world’s largest; Chuquicamata; El Teniente; and Collahuasi. Chile’s leadership in global mining is based on very large, high-quality ore deposits; stable mining laws and investment policies; strong infrastructure (roads, ports, electricity); a skilled mining workforce; and decades of investment in exploration and technology. Today, Chile continues to invest in cleaner mining, desalination plants for water supply, and renewable energy to power mines.
The Philippines possesses some of the largest undeveloped copper reserves in Asia, but production is much smaller than Chile’s because of regulatory uncertainty, inability to address major environmental concerns, and delays in developing major copper projects. The country produces around 200,000 to 300,000 metric tons of copper, contributing only a modest share of exports and GDP. Most copper is exported as copper concentrates with limited downstream processing. Some of the major mining companies are Philex Mining Corp.; Saggitarius Mines, Inc.; Carmen Copper Corp.; and Silangan Mindanao Mining Co. Some of the major mines and projects are the Pacdal Mine, the Toledo Copper Mine, the Tampakan Project (which has among the world’s largest undeveloped copper-gold deposits), and the Silangan Project.
It is not unlikely that closer ties and more frequent contacts between Chile and the Philippines through the recently concluded FTA can lead to interests on both sides of the Pacific to get Chilean mining companies to partner with our own to develop our vast copper resources. To make this possible, we have to learn from the lessons that Chile provides to both our public and private sectors: a.) maintain a stable and predictable mining policy; b.) balance environmental protection with responsible mineral development; c.) expand domestic processing and refining to add value before exports; d.) invest in transport, power, and port infrastructure around mining areas; and, e.) build strong partnerships with local communities so that mining benefits are widely shared, especially with indigenous peoples.
I would like to call the attention of Chilean copper mining companies to this fact: that our country has the geological potential to become one of the world’s leading copper producers, following in the footsteps of Chile. If major projects such as Tampakan and Silangan proceed under a stable regulatory framework with high environmental standards, the Philippines could significantly increase copper production (extremely vital to the US-Japan initiative called Pax Silica) over the next decade or so, while generating exports, employment, and government revenues for the Philippines and its potential Chilean strategic partners. We were heartened to learn from Consul Pizarro that Chile has decided to join the Pax Silica initiative.
Read Parts 1 and 2 here, https://tinyurl.com/2cn7flr2 and here, https://tinyurl.com/22xjbxay.
Bernardo M. Villegas has a Ph.D. in Economics from Harvard, is professor emeritus at the University of Asia and the Pacific, and a visiting professor at the IESE Business School in Barcelona, Spain. He was a member of the 1986 Constitutional Commission.
