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Chilean cherry season-end summary: exports in the most difficult season in history increased slightly by 1%, the industry urges "long-term vision"

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2022-05-29 16:57:00

Chile exported 356,385 tonnes of cherries during the 2021/22 season, up 1.11% from the previous season.Despite record export volumes, the industry described the season as "the toughest on record".

The Chilean Cherry Committee said the end of the season was worse than expected.This is the third consecutive year the organization has made this conclusion.

"We anticipated a difficult season, and we are aware of the huge challenges we will face in terms of repeated outbreaks, tight logistics, and a shortage of labor," said Ronald Bown, president of the Chilean Fruit Exporters Association (ASOEX).

"The strategic focus of the committee is to unite the entire industry and work with the SAG (Chilean Agricultural and Animal Husbandry Authority) to ensure the supply of cherries of higher quality."

Cristián Tagle, chairman of the Chilean Cherry Committee, said that the season has started well, "the quality is good and the price is high, and it is very competitive in China. There is a more diversified market outside.”This, he said, showed that the committee's approach to introducing quality standards was working.

"However, the impact of external factors had a very negative impact, and the tightening of quarantine on imported fruits in China also caused delays in the time for containers to enter China, causing unexpected twists and turns."

As Chile's weekly shipments reached 1,500 containers, fruit The time to market is even longer.The emergence of the Omicron variant has exacerbated this situation, with most cherries not being available for sale until 40 to 60 days after harvest, Tagle said.

"This means that we still have 40% of our total cherries not sold after the Chinese New Year holiday, which is unprecedented for our cherry industry," he explained.

Although the committee has done its best to stimulate demand, investing an additional US$1 million (approximately RMB 6,626,300) in marketing, the decline in the quality of the fruit has led to a phantom trying to sell a good price, and it has also affected the entire season. grades had a major impact.

Overall, the committee stated that the situation this season is very complex, with variety (Regina being the most affected), quality and the condition of the fruit when it arrives that determines the final sale.

market diversification

Exports to China accounted for 88% of Chilean cherries this season, down from 91% in the 2020/21 season, according to the commission's data.

Exports to the U.S. rose 100 percent, as well as to other Asian markets, notably South Korea up 25 percent and Taiwan up 30 percent.

"There is no doubt that further investment in new markets will be required in the future, both in terms of marketing and logistics," Tagle said.

In terms of returns, he concedes that producers must lower their expectations three or four years ago.

"It turns out that China is still able to pay higher prices for quality cherries after the Lunar New Year, while other markets are more inclined towards better price and higher volume," he said.

"We also have to take into account that other markets can also pay very good prices for good quality fruit - albeit lower than what we have had for a few weeks in China. If we can make a decision in the medium term to develop new markets, this will Allows us to capture the potential of markets outside of China. If you only think about the short term, it will make it more difficult to diversify."

Tagle said that while advancing diversification, it is important to continue to provide better products to China.

"We still have to see our goals clearly. Market diversification is undoubtedly a necessary path, but not the only path. Meeting major markets will remain the biggest challenge."

He said Chile should also prioritize increasing access to ports in central and northern China "It will be a sensible and natural development as production grows in the future".

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