Chile is the South American country that seems to have it all. Its long and rich terrain offers a diverse range of soils and climates, suited to an array of fresh produce from avocados to kiwifruit and cherries to grapes. The fruit of years of labour into good agricultural practices through various exporter associations and sector committees are now paying dividends as the country is a major international fresh produce player.
Exporting more than 75 different fruit and vegetables to 70 markets, Chile’s main products are table grapes, top fruit, kiwifruit, citrus and avocados, but other rising stars such as blueberries, pomegranates, figs and guava are shining through, as consumer tastes change around the world.
Despite a cold snap at the beginning of 2010 and an earthquake last February that affected both crops in production and distribution out of the country, Chile is going from strength to strength, with no less than 16,300 producers and 556 fruit exporters.
The UK receives approximately 140,000t of Chilean produce a year and consumers and retailers alike can’t get enough of what the country has to offer.
GRAPES GOING STRONG
Availability: November to May
The 2009-10 table grape season experienced high prices, due to a delayed spring harvest and disruption caused by the February earthquake and therefore a shortage of fruit. “This resulted in very high prices in March and then [when volumes were available again] the market was capable of absorbing the volume, which affected prices again,” says president of Decofrut, Manuel Alcaino. “The situation appears far more promising as the grape industry embarks on the 2010-11 campaign. The table grape season is going to have a very good season.
“For climatic reasons, there are a lot of bunches in the vineyards, which means that volumes will be higher and growers will be able to select the best quality for the export customers.”
The industry expects the category will see around a seven per cent rise in volume year on year. “The European market should see a little more volume than last year, which was seriously affected by the earthquake, and the quality of the fruit should be better.”
KIWIFRUIT EXPORTS ON THE RISE
Availability: February to December
The Chilean kiwifruit industry has been working on a more consistent, high-quality offer for a couple of years with the formation of the Chilean Kiwifruit Committee (CKC).
“We had a very good 2010 as an industry,” says Oscar Villegas, commercial manager of kiwifruit exporter Exportadora Subsole and board and executive committee member of the CKC. “Chile exported 180,000t of kiwifruit, which was a four per cent increase on 2009. Europe is our major export market, taking 65 per cent of our kiwifruit exports and the US, Latin America and the Far East take an equal proportion from the rest. We are expecting a small increase in volume in 2011, as well as a further improvement in quality and condition, and we will work very hard to maintain and improve our position in all of our key markets.”
NOT SO BLUE
Availability: October to May
The UK has proven to be an especially important export market for Chilean blueberries. Although the sector has experienced a setback in the form of reduced carton weight, the soft-fruit sub-category has experienced double-digit growth in the UK in the last five years and strong growth is set to continue.
Last season started slowly, despite projections of a 30 per cent increase in the crop, as the cold spring delayed harvest and consequently the market was always running short. Chilean growers were mostly pleased about the season however, as the crop only missed the prediction by 10 per cent and ended up showing a 20 per cent increase on the previous year.
A young market, the Chilean Blueberry Committee (CBC) is aware that it has to stick to its objectives in order to maintain sustainable growth in market share. “We have been able to improve the quality and condition of the blueberries on arrival to international markets,” says Felipe Juillerat, marketing and sales manager at Vitalberry and president of the CBC. “That will be enhanced by a food safety assurance programme that the committee is putting together for this season. We gathered a great deal of information at farm level that will give us the opportunity to be far more focused on what we do in the coming season. Our weekly crop reports provided everyone with a detailed analysis of production by region, as well as any climate changes and weather-related issues that may arise.”
The CBC has also been involved with Uruguay and Argentina for the Blueberries from the South campaign, which saw the UK’s first TV advertising campaign in 2009-10. The adverts, which highlight the “fun and healthy” properties of blueberries, were again aired at the beginning of the 2010-11 season. The on-air exposure reached 56.5m people and an estimated 33 per cent of people that buy household food.
CITRUS BREAKTHROUGH
Availability: May to February
The Chilean citrus season featured some interesting developments across the basket of products. Exports are still ongoing from Latin America and final export figures are not yet available, but Chilean exporter Agricom’s Juan Enrique Ortuzar, president of the Chilean Citrus Committee (CCC), reports “pleasing developments” and “good growth” for the industry. “Overall, it will be a good season - we estimate around a 10 per cent increase in both shipments and FOB value across the citrus crop,” he says.
“There have been different scenarios for different products. Lemons have performed well and we have seen an adjustment in terms of the markets that took the fruit. A lot more fruit was sent to Europe this season, which we are very pleased about.”
Despite some difficulties, exports of Navel oranges have been far higher year on year - by up to 3m cartons, according to Ortuzar. “We had a big freeze at an important stage of the production season and growers were very disciplined in ensuring that none of the damaged fruit was exported,” he says. “It was a difficult situation, but the industry was co-ordinated in its approach and the markets accepted that very well. Clementine exports are not yet finished, but they have followed on well from a good performance by late mandarins.”
THE CHERRY CHALLENGE
Availability: November and December
Although cherry production has a limited window in Chile, yield increased dramatically last season from 35m kilos to 55m kilos. “Be prepared, it’s going to be an interesting season,” says Decofrut president Manuel Alcaino.
“This is a tremendous increase and it will be a challenge to sell that fruit. The Chinese market is eager to receive bigger volumes, but we should also see more volumes of Chilean cherries sent to Europe.”
Volumes were down by 13 per cent last year, but the industry received a much-needed boost from the Chinese New Year falling late in the calendar and in the Chilean cherry season. However, this resulted in high prices for other markets - a problem that shouldn’t arise this season. The principal cherry varieties are Bing and Van and other stonefruits grown in Chile include Elegant Lady and Flavorcrest peaches, nectarines and apricots.
In general, stonefruit volumes were down last season because of the difficult weather, with plums falling by 22 per cent year on year.
“Prices were high in most markets though and the stonefruit business was also positively affected by the shortage of grape. As with blueberries, lower volumes than expected were compensated for by prices and growers and exporters emerged from the season happy.”
RISING TO THE TOP
Availability: Year round
It is still too early to make an accurate forecast for the 2011 Chilean apple season, which starts in February, but last year was short in relation to the previous one, says Decofruit president Manuel Alcaino.
“Unfortunately, those shorter volumes were not counterbalanced by higher prices, particularly in the European market, which was characterised by lower consumption and demand, and lower prices.”
WEATHER HITS AVOCADO SUPPLY
Availability: June to February
Unpredictable and inclement weather has led the Chilean Avocado Importers’ Association (CAIA) to forecast a smaller avocado crop for the 2010-11 season than originally projected.
New estimates indicate 100-120 million lbs of Chilean Hass avocados to be shipped to the US this season.
Due to the alternating fruit bearing of avocado trees, the new projections are on a par with those of the 2008-09 season. Compared to that season, the acreage is approximately the same and there was also a freeze that year.
“Unfortunately, we can never anticipate Mother Nature and have had a lack of rain and a cold late spring,” said Jorge Covarrubias, CAIA chairman. “We wish we had more fruit.”
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