Grupo Singular and UDEC Initiative Aims to Reverse Low Commercialization of Magallanes Wool

The methodology seeks to innovate through a joint and participatory search for solutions, including Agronomy students, due to the multifactorial nature of this business.

There are sheep farmers in Magallanes who have been unable to sell their wool production for more than three years. Considering that it represents 40% of their income, this poses a significant challenge to their sustainability. To help address this issue, the Faculty of Engineering at the University of Concepción (UdeC) partnered with the Magallanes-based business consultancy and accelerator Eleva Patagonia SpA Grupo Singular. This initiative promotes a project funded by the Foundation for Agricultural Innovation (FIA) to collaboratively address the issue, with workshops such as the one recently held at the University of Magallanes.

Mauricio Ojeda Silva, a public administrator and manager of Grupo Singular, explains that there are very few buyers—in Magallanes, only two—and that the available local wool is medium to coarse, while the most internationally demanded types are fine and ultra-fine, particularly for textile products. “Therefore, we need to find alternative uses, for example, in construction for insulation,” he said, adding that similar long-term initiatives are being carried out by CORFO and other institutions.

Ojeda also noted that this situation was foreseeable. “We have a wealth of statistics available on the website lanamagallanica.cl, where reports from previous years already pointed to these trends.” He mentioned that producers who reacted in time have begun replacing wool-producing breeds with meat-producing sheep, as the latter generates a much more stable commercial product. His consultancy is now addressing the urgent need to sell the accumulated wool stock.

Universities for Social Development

Martín Mellado Guerrero, Director of Innovation at the Faculty of Engineering at the University of Concepción, leads the collaboration with Grupo Singular in this effort. He stated that the partnership was formed due to their “interest in developing projects that contribute to society,” providing academic support in designing and implementing the participatory process that forms the core of this initiative.

He explained that the methodology being applied is the “double diamond” approach, which first seeks clarity on the problem and then works on developing a solution. In this case, all stakeholders—including suppliers, marketers, public policy representatives, FIA, ProChile, industry groups, and others—are involved in both stages. “It is beneficial for all parties to agree on where to focus efforts,” he explained, as this issue affects a large distribution chain with different contexts. Moreover, as the initiative explores solutions whose effectiveness is uncertain, this strategy enables volume-based innovation, generating strong results in open innovation by incorporating diverse perspectives that enrich the approach and create synergy.

Meanwhile, Dr. Sergio Radic Schilling, Director of Innovation and Agronomy Professor at the University of Magallanes, emphasized that his department participated in the workshop with students because “the sheep farming sector in Magallanes is extremely important. We have more than 50% of the country’s sheep stock in this region, so I believe it is essential that we take part in this decision-making process. Additionally, in terms of education, our students can become key players in finding solutions when they enter the job market,” he projected.