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Chile's grape growers hit by cold snap

Chile has declared a state of emergency after frosts caused an estimated $1 billion worth of damage to fruit crops.

Wine production is expected to be hit due to the severe weather conditions taking place in the South American nation, which is one of the region's top fruit exporters, and the world's seventh-biggest wine producer.

The affected central region includes vineyards owned by prominent local wine labels Concha y Toro, and Valle San Pedro, reported Reuters.

Among the wine varieties, the early grapes such as Chardonnay and Pinot Noir have been hardest hit.

A spokesman for the national agricultural society said: 'These frosts are the worst that agriculture has faced in 84 years, impacting the area from Coquimbo to Bio Bio.'

Fruit and wine are some of Chile's largest industries after copper. Fruit exports were worth $4.3bn in 2012 and wine exports were valued at $1.8bn, according to government figures.

Agriculture minister Luis Mayol, who reported that 30 per cent of the fruit that Chile exports has been affected and pledged aid for farmers,said the government will give its estimate on the cost to industry in the next two weeks.

Fruit trade association Fedefruta, though, has given an early estimate of up to $1bn of damage from the extensive cold snap in late September.