Osorno is an important agricultural center, and agriculture makes up the bulk of the Osorno province's economic activity. Wheat and oats grow abundantly, but the land is also well-suited to the breeding of Chilean horses and cattle. Some of Chile's finest beef products originate in the Osorno ranches.
Osorno's proximity to the Cardenal Antonio Samor� Pass makes it a key place the national economy. The mountain pass connects Osorno to the Argentine city of Bariloche, and is one of primary arteries that ties the two countries' southern regions together. The pass is particularly important due to the fact that it crosses the Andes mountains at very low altitude, allowing it to remain open even when other passes are blocked by snow.
Despite all this, Osorno has seen some economic stagnation in the past several decades. Agriculture alone has not allowed it to keep pace with the booming, rapidly- industralizing Chilean economy; Osorno lacks both industrial and information-services sectors. In one effort to combat this, the city has forged international business ties with several Dutch companies, after it was discovered that the local climate is ideal for the growing of tulips. Likewise, Osorno has recently entered the international meat market. Besides offering high-quality beef, the isolated region is also completely free of the recent rash of cattle plagues such as Mad Cow and foot-and-mouth disease, guaranteeing the safety of Chilean meats.
Osorno is now faced with a unique opportunity: the arable land is ideally suited for the growing of beets, soy, and corn, crops rising in popularity with the recent development of bio combustibles: fuels derived from crops, such as corn-derived ethanol. It is hoped that the Chilean government's announcement that it will not apply the same steep taxes to agricultural fuels as it does to petroleum products, as well as the increasing demand for more environment-friendly fuels, will mean that Osorno will again
