Chile expects to increase its cherry exports to the European Union (EU), Japan and especially China in the future as production continues to expand in the South American nation.
Planted area with cherries has spread significantly in Chile during the last few years, rising by 1,500ha-2,500ha annually, according to a new GAIN report published by the US Department of Agriculture (USDA).
Of the 16,000ha currently planted, the USDA said close to 40 per cent of orchards are still not in production or are in the incremental stage of production, meaning output should continue to grow in the next few years.
Data from Chile’s Ministry of Agriculture and Customs, and reported by Fresh Fruit Portal, point towards a 32 per cent rise in Chilean cherry exports to 75,774 tonnes this season (2012/13).
Nevertheless, the USDA said industry sources are “skeptical and worried” since weather predictions indicate that El Niño could bring unseasonal rainfall during the harvesting period, which could seriously affect quality and volume.
Chile shipped some 70,227 tonnes of cherries last season, to primarily China, the US and Hong Kong, according to the USDA report.
Since 2007, the USDA said Chile has exported cherries duty free to the EU, while in six years’ time its agreement with Japan will lower the current 8.5 per cent duty to zero.
Chile’s trade agreement with China also calls for a duty reduction in three years, down from the present 10 per cent duty, the agency noted.
Cherries are one of the few fruits for which Chilean producers are increasing their planted area significantly in spite of the continued fall in the value of the US dollar against the Chilean peso, according to the USDA.
The continued devaluation of the dollar is causing a rise in production costs (in pesos), while returns (in dollars) are falling.
