Chile’s avocado industry has been growing at a phenomenal rate during the last couple of decades. The main producing area, north of Santiago, in the country’s central fifth region, has become emblazoned with endless rows of ploughed ridges working their way up the hillsides. And a surge in output is following swiftly.
The general consensus is that volumes will be stable this year. However, Adolfo Ochagavia, general manager of the Chilean Hass Avocado Committee (CHAC), has already reported a surprising step up in volumes sent to the UK in the season to date, which began five weeks earlier than that of 2004/2005. “This year for the 2005/2006 season the first 42 tonnes departed from Chile in week 30 (July 25-31) and last year the first 226t departed in week 35 (August 30-September 5),” says Ochagavia. “Until week 38 (September 25) the total exports to the UK jumped from 1,393t last year to 1,716t this season, an increase of 23.2 per cent.”
According to the committee, shipments to the UK look strong for the coming season, with a total forecast pitched at 4,300t. Considering Chile’s overall avo production measures in at around 175,000t, the UK share is but a trifle. However, this could be set to change before long, thanks to a combination of increasing demand, product availability and fluctuations in the global market.
Avocado has been an important resource for Chile for some time but it is only in the last decade or so that the sector’s growth has become so visibly apparent. “It is only in the past 10 to 15 years that avocados have been planted up in the hills,” says CHAC’s operations manager, Ricardo Waissbluth. “It used to just be down in the fields but because of the big interest in producing avocados in the last few years, there isn’t enough land left in the valleys.”
However, there is a distinct physical advantage to cultivating at increasing altitudes, says Waissbluth. “The difference in temperature between the plain and the hill is at least 3°C and the higher you go, the higher the temperature which is better for Hass. Hass can survive at 0°C but no lower.” In the early years the novelty of planting on the hills meant land prices were relatively cheap. However, increasing shortages of flat space has heightened the necessity of progressing higher, resulting in increased competition and prices as all viable land is seized for production.
Desarollo Agrario, one of the country’s largest production sites is a prime example of the scale of growth. “We started planting avocados 11 years ago in 1994,” says managing director, Arturo Gubler. “Since then our plantations have grown from 30 hectares to 330ha. We get around 15-20t per hectare, compared to a Chilean average of 8t per hectare, which means we produce between 4,500t and 6,000t per year.”
However, it is not just the level of planting causing volumes to rocket but the increasingly dense organisation of trees. “In our older plantations the trees are six- by-six metres apart. Then about seven years ago we changed the structure so that all new plantations would be three-by-three metres apart,” Gubler explains. As such the investment involved is significantly greater. Not only does this concentrated planting constitute many more trees per hectare, but the process is much more labour-intensive owing to the additional pruning and irrigation required.
On the other hand, the trees bear more fruit more quickly owing to the competitive nature of their roots. As such, a tree may produce commercial volumes in two years rather than three or four, and producers can expect to harvest 16-18t per hectare rather than 12-14t.
According to Ignacio Cifuentes, managing director at Huerto California, a tree nursery managed by major Chilean exporter Safex, agronomists have discovered the trees grow most successfully in ridges. “The avocado roots only need around 40cm depth because they extend laterally but in some areas, especially on high slopes, the soil is as thin as 10cm on top of compacted rock,” says Cifuentes. “Therefore growers have started to plant the trees in ridges built up above the ground level to give the trees the best chance to thrive.”
Despite the effort involved in preparing the plantations, Gubler and Cifuentes agree the rewards of investing in a stable product like Hass avocado are considerable. “An avocado tree can produce fruit for more than 50 years, so you would only need to replace them if they became diseased.” says Cifuentes. “It is totally different from all other fruit. With avocados, people will be talking about Hass forever. No-one is trying to replace Hass - rather, all new developments are new types of Hass, whereas in other sectors, such as stone fruit, new varieties are wanted every few years.” This knowledge gives growers confidence to make huge investments, to which the nursery bears witness on an increasing basis, says Cifuentes. Huerto California sells around 200,000 trees a year and, with this year’s quota already accounted for, the business is already taking orders for next year.
Another distinct advantage of growing avocado is the flexibility in harvesting, according to Gubler. “The picking season is what we want it to be,” he says. “The fruit keeps on ripening so we can keep it on the trees, unlike any other product.” Despite the obvious incentive to prolong the period of supply, Cifuentes advises against over-manipulation of the natural season, however. “It is important to harvest early in order to give the next generation of fruit time to grow and become a decent size,” he says. “Otherwise you get two years’ production in the same tree, so in December you get small and ripe fruit together.”
Propal, one of Chile’s top three avocado exporters, is hoping to extend its current five-month season to eight months in the near future, according to export manager, Reimundo Lira. By having member-growers in all of the country’s viable growing regions, Propal will increasingly be in a position to harvest fruit for longer than many smaller companies. “We have found a couple of fields in the south which we think might allow us to pick fruit beyond the end of our season, but we are only at a trial stage this year,” Lira explains.
Despite Propal’s considerable standing within the industry, up to 50 per cent of its avocado production comes from holdings which are not yet certified by EurepGAP or Tesco Nature’s Choice (TNC), which inevitably limits the volumes available for Europe, and the UK in particular. However, Lira claims the incidence of certification is increasing year-on-year.
Despite the all-consuming nature of the business, both agronomically and commercially speaking, which he admits may seem unduly arduous for some older or smaller producers, Gubler has no intention of slowing down. “Last year we planted 36ha and we are in the process of buying more land in this region,” he says. “There is land available because there are always people wanting out of the business.”
While conceding the need to keep on top of technical developments, Gubler claims the differing success experienced by producers is down to knowledge rather than an ability to embrace modernity. “It is not a question of technology: that is available to all. It is a question of doing what you need to at the right time.” To ensure it continues to adhere to this prescription, Desarollo Agrario enlists the advice and support of agronomists, on both a full-time and occasional basis, as well as researching the experiments of fellow avocado enthusiasts around the world, Gubler adds.
Whatever the reason, broadly speaking the Chilean avocado industry has clearly been getting things right in recent years because forecasts indicate volumes are set to rise by a staggering 25 per cent for next season. Yet this boom will be met with a mixture of anxiety and excitement, Gubler suggests. “Up until now the expansion has been theoretical, but the newer trees have all been maturing and next year we will see the results,” he says.
To date, Chile’s main export market for avocados, as well as most other products, has been the US, which until recently absorbed 99 per cent of its exportable volumes. Last year this figure dropped to 90 per cent, as demand grew elsewhere. However, this US bias is not sustainable, and has urged the industry to revaluate its marketing strategy in a drastic fashion.
Not only is the US’ own production in California expected to surge next year, but by then Chile’s nearest rival, Mexico, will be granted access to all states of the US, which will decrease Chile’s dominance. As such the onus is on exporters to ensure they have developed alternative routes for their produce before next season.
Despite this urgency, Gubler is philosophical about the potential shift in trade alliances. “Up to now the US has been the best market for us,” he says. “The difference between prices from the US and Europe has been as much as 50 per cent.” However, this differential is widely expected to decrease as volumes expand worldwide. And, while Mexico may prove successful in the US, Gubler believes Chile will come out on top when it comes to more distant markets. “For a country like the UK, there are two possible sources,” he claims. “There are wet countries, such as Mexico, South Africa and New Zealand which have rain all year round. This makes a difference in terms of the shelf-life because the avocados are at risk from fungicides which are difficult to control once they get into the leaf stems.” According to Gubler, European buyers are now realising that these wet countries are not as reliable as dry countries, such as Chile and Peru, whose rainy seasons are confined to their non-harvesting winter months.
Lira says Chile is developing a strong reputation in the UK. “Last season we stole some of Spain’s share because it suffered from frost so we kept supplying the UK until March and this season seems to be similar, but we are also stealing some of Mexico’s.”
With consumption of avos rising by around 20 per cent every year, Europe is an attractive market for Chilean producers, although larger producers will need to look further afield.
However, producers agree that further development in post-harvest techniques will be essential if Chile is to succeed in tapping into the vast potential suggested by the eastern European or Asian markets.
Promotion is another vital consideration - a point not lost on the industry’s major players. CHAC has implemented a successful promotional campaign in the US, supported by the “check-off law”, a mandatory tax issued for every imported box. This year, CHAC has turned its attention to Europe, and the UK in particular. While avocado has become a firm favourite among Chileans, with consumption projected at around 7.5kg per year, UK shoppers are only eating an average of 150g, with three quarters eating none at all. With this in mind the committee has gone back to basics to appeal to the unaccustomed palate.
This autumn will see Chilean avocados in all the major UK retailers packed with booklets containing basic tips about ripening and preparation of the fruit, nutritional information and four simple recipes to try, using avocados in salads, sandwiches and the already widely popular Mexican dish, Guacemole.
One successful venture has been the increased take-up of avos in Chilean branches of McDonald’s. According to one branch manager, the avo-topped burgers and hotdogs, salads and sandwiches have proven increasingly popular in the two years since they were introduced. The advantages of establishing an in-road into such an omnipresent entity as McDonald’s are apparent and the committee is optimistic that with the right level of exposure, the benefits for Chile, as well as other avocado producing countries, could be massive in the not too distant future. âóè
No comments yet