The Chilean fruit industry is thriving and, with 215,000 hectares of planted area and more than 75 species of fresh fruit products exported directly to more than 100 countries, it is the leading player in the southern hemisphere, with a 49.9 per cent market stake. Although exports to the UK, Chile’s number-one European market, dipped by 1.2 per cent in the 2006-07 season, the industry remains optimistic, blaming the drop on weather conditions. However, most importantly for the UK market, the volume of fruit may have been down, but the quality of produce was consistently good.
“Overall, I would say last season was a solid one for us, and we received positive feedback from our retail partners,” said Ronald Bown, president of the Chilean Exporters Association (Asoex). “While volumes of some of our more traditional products either grew or dipped slightly, as can be expected, it was a great year for new species and growth in Russia, which is a very interesting market.
“In Europe, we are seeing the strengthening of trends, most notably, increased retail penetration in emerging economies and better public awareness of the benefits of getting your five portions of fresh produce a day.”
Chilean products such as cherries, blueberries and raspberries are becoming increasingly popular among UK consumers, and the Chilean fruit industry is responding accordingly by increasing production. Strong red apple sales, which saw an increase of 16.5 per cent in the 2006-07 season, along with excellent growth in products such as blueberries and cherries, has helped compensate for reduced sales in table grapes.
“Even though it was a late start for cherries this season (2007-08), the product has done very well,” Christian Carvajal, marketing manager Europe-Asia for the Chilean Fresh Fruit Association (CFFA), tells FPJ. “Grapes and stonefruit follow onto the UK market in quite strong quantities, and nectarines and plums have been very popular - especially the ready-to-eat nectarine variety.
“But blueberries are increasing all the time. In Europe, the UK is the biggest market for the berries by far, and the US market is calling out for both fresh and processed blueberries.”
As exporters move over from shipping cherries and blueberries to grapes and stonefruit, one factor remains consistent: the quality of the fruit. Both Chilean growers and exporters are aware of the high standards working with the UK multiples brings, and the quality they have to maintain to fight the anti-airfreight vibes amongst certain UK consumers.
Bown is confident that the Chilean industry will go from strength to strength. “The Chilean fresh fruit industry has seen exports to Europe almost double since 1990, thanks to steady investment in the sector, confidence in our products and key innovations, such as ChileGAP, a good agricultural practice scheme which harmonises the strict phytosanitary and GAP requirements of both our biggest trade partners, the EU and the US,” he says.
Cherries
A delayed start did not hold back this Chilean cherry season, and the total volume of cherries produced was more than expected, although this brought problems of its own. Cold climatic conditions in the winter and good weather in the picking period brought good-quality fruit, but inconsistency in size and flavour meant that a large amount of cherries went into the domestic market, rather than exports.
Rodrigo Echeverría Díaz, president of Fedefruta, the association for fruit producers in Chile, says cherry growers need to strike a balance between the quantity of produce they are growing and the quality. “The volume of cherries this season was totally unexpected and was too much to move into the market,” he explains. “We can grow much more, but we need to concentrate on quality. We had a lot of small-sized cherries in our harvest that did not have the quality the UK market requires.
“For the UK, you need to work to specifications; we have very specific packaging standards and need to produce large fruit for the smaller packs. We would like to produce premium cherries, and the industry needs more time to become specialised and add value to our product.”
Despite continuity issues with the fruit this season, cherries are the fastest-growing Chilean product in the UK. Exports of Chilean cherries to the market have grown by 133 per cent in the past three seasons, from 600 tonnes in the 2003-04 season, to 1,400t in 2006-07.
Blueberries
Another fruit that is growing in popularity in the UK is blueberries and, hailed as a nutrient-packed superfood, the product is a growing market for Chilean growers. Chilean blueberry exports to the UK experienced a significant growth of 60.2 per cent, from 1,440t in 2005-06, to 2,307t in the following season.
“It has been a good season, producing good-quality, large fruit,” says Echeverría Díaz. “It is a growing and important market for Chile. We have increased our production of blueberries and a good deal are destined for the UK.
“But we have to be careful with the UK market, as we increase our production. We have to make sure we are producing the right quality of fruit and work to specifications. This is a high-value product and we need to make sure it remains as such.”
According to Echeverría Díaz, the 2007-08 season was the first time that more Chilean blueberries were produced for the fresh fruit market, as previously its principle customer was the frozen sector. The only problem on the horizon is Chile’s neighbouring competitor, Argentina. “Argentina is growing a lot of blueberries, and its share in the UK market is increasing,” says Echeverría Díaz. “The country has perfect conditions to grow the berry in. I think that, at the end of the day, all competitors are growing in size, and the competition will affect the Chilean fresh fruit industry, as the price of packaging increases and the exchange rate loses us money.”
Grapes
As the first arrivals of Chilean grapes reach the UK, the season’s outlook is good. Chilean grape exports to the UK dipped from 63,828t in 2005-06, to 55,687t in 2006-07, but the industry is expecting the volume going to the UK to increase this season, despite tough growing conditions. Setbacks have included frosts in production areas Copiapó and Coquimbo, but production in the Central Valley is now underway and the industry is optimistic.
Santiago-based analyst Decofrut has predicted an overall export deal of 854,000t for the season - an increase of six per cent on 2006-07. “Table grape production in the Central Valley, for this season, is comparable to any normal year, not taking into account potential climatic problems that could affect output,” says Decofrut analyst Karen Jones. “Volumes are expected to be higher than last season’s, and this can be explained in part by the contribution of vineyards that are still developing, as well as by the recuperation of those vineyards affected last season by adverse climatic conditions.”
Echeverría Díaz believes that the UK will receive more Chilean grapes this season than last. “This year, we are going to have more quantity for the UK because we want to send less to the US market,” he explains. “Since the value of the US dollar has declined, we have seen this, and other markets will follow us.”
The first crop of grapes from the north of Chile was approximately 10-12 days late, but now grapes are achieving a high price and many believe that the price will be constant. “Our fruit arrives in good condition in the UK, and I think that demand from the UK will grow this year, as the number of Chilean exporters is increasing,” says Echeverría Díaz. Whilst Thompson White Seedless remains the most important grape variety, retailers in the UK are looking for a new market, and Echeverría Díaz believes the black grape varieties will grow in popularity. “Black grapes are more attractive to the UK consumers, as they generally are of better quality and contain more antioxidants than white grapes,” he says.
Black seedless grapes are expected to perform particularly well, with increases of 150 per cent and 81 per cent in the Third Region and Metropolitan Region respectively. For the best-selling Thompson White Seedless, increases are expected to range from four per cent, in the Metropolitan Region, to 15 per cent, in the Third Region.
“The climate has been very favourable and dry, which is excellent for the condition and flavour of the grapes,” says Rodrigo Duran, export director for David Del Curto SA, one of Chile’s largest grower-exporters. “This is important for the market; it always helps support consumer demand.”
However, the overall volumes of Red Flame Seedless are down, compared to last year, mainly because of the cold spell in the north during the spring, says Duran.
“We lost three to four weeks in the earlier part of the season, and that means we have to sell more later on. However, because of the smaller-than-expected Red Flame harvest, the pressure is not going to be as great as we initially thought. It is going to be challenging during the peak part of the season for Thompson White Seedless, but for the other varieties we don’t see any major problems,” he explains.
A large percentage of the country’s overall fresh fruit deal, the grape season is expected to last until the end of August.
Stonefruit
Peaches and nectarines benefited from Chile’s cold winter, resulting in good quality across the board. Despite a 10-day delay to the start of the season, the fruit has a good eating quality and a good size. “The stonefruit season is always late in Chile, and this season was no exception,” says Echeverría Díaz. “We have 20 or more varieties of peaches and nectarines, and producers are growing new varieties all the time to find out which is best.”
The peach and nectarine crop has increased in volume considerably over the last season, and has recovered from a season of mild weather the previous year. “It is a very good years for peaches and nectarines, and we have maybe 10 per cent more than last year,” says Echeverría Díaz. “But last season was down in volume, because there was a problem with the warm climate. It follows a pattern that emerged two to three years ago, so we expect the crop to increase.”
Hass avocados
The total of Hass avocado produced this season has finished at 110,000t, which is almost 30 per cent less than last season. Adolfo Ochagavía, president of the Chilean Hass Avocado Association (CHAA), says that a bad frost in Chile is to blame for the reduction in production, but that the amount of Hass avocados exported into the UK this season, from September to January, has remained the same as last season.
“This season has been very good in terms of quality,” he says. “We were very aware of looking for quality because of the frost, and therefore we were more critical in the selection process. Next season’s production will follow the same pattern and volumes will be low, as frost damage affects avocado tree flowers for two years.”
The CHAA believes that avocado consumption in the UK will increase next season, and plans to continue its promotional campaign throughout the UK. “Right now we are finishing a season with less fruit and the budget is tight,” says Ochagavía. “It is a challenge to be creative and make an impact, but we will do it.”
CFFA ON EUROPEAN TOUR
The Chilean Fresh Fruit Association (CFFA) will be targeting consumers at some of Europe’s biggest retail chains in a Flavours of Chile campaign through various in-store promotions this year.
Aimed at helping to raise awareness of Chile’s fresh fruit and culture during the height of the Chilean growing season, the raft of activities include in-store tasting, multi-media campaigns, consumer competitions and live entertainment in the aisles.
To complement these point-of-sale activities in the UK, Italy, Germany, France and Spain - designed to enhance retailers’ stock turnover and familiarise consumers with Chilean fresh fruit - the CFFA is collaborating with supermarket consumer magazines by supplying features and articles about the South American country’s fresh produce and rich heritage.
The CFFA will be targeting a market each month, and activities in the UK will soon be underway. Householders who shop at four of the top retailers will be finding out about a range of seasonal Chilean fresh fruit through both retailer and consumer magazines, in-store sampling, radio segments and adverts on the shopping trolleys.
The CFFA will also be extending its marketing campaigns into two important future markets for Chile: Russia and Poland. “Our overall goal is to support and build good relationships with the European retail chains,” says the CFFA’s Christian Carvajal, pictured. “Our focus is to work directly with retail buyers to support them in their sales objectives.”
Meanwhile, in Germany, the CFFA will be spreading the message during a special educational week at a selection of top German retailers, starting in April. There will be fresh fruit tasting, display posters and plenty of printed information on hand for people wanting to find out more about the country and its grapes, plums, apples and pears.
In May, shoppers at two Spanish retailers will be able to sample Chilean fruit as the CFFA highlights kiwifruit, apples and pears. And at one retailer, actors dressed in traditional Chilean costume will be travelling across the country giving interactive demonstrations of uses for and the nutritional value of Chilean produce - and reminding shoppers that buying Chilean is not unpatriotic, since its growing season is different to Spain’s.
In Italy, the same varieties of fruit will be promoted with in-store tasting sessions in May at three major Italian retailers.
Finally, in France, the CFFA will be joining forces with primary suppliers to promote an assortment of Chilean fruit in a large French retailer. There will be a Chilean promotional week supported with on-pack promotions, with a consumer competition highlighted by point-of-sale graphics and customer information leaflets.
All Chilean marketing material can easily be identified by consumers thanks to a new image using photography of Chile and its products. All materials are also accompanied by the presence of the fruit industry logo and the national logo: Chile - All Ways Surprising.
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