UK importers are keeping a watchful eye on protests in Chile by grower and exporter groups, as the South American country experiences one of its most complicated seasons in decades.
Both producers’ organisation Fedefruta and exporters’ association Asoex joined protests by regional grower groups last week, to try and persuade their national government to intervene as the dollar plummets against the peso.
Neil Denny of importer Richard Hochfeld said: “So far, the protest action has not affected any fruit coming through, but we are watching the situation very closely.”
The value of the US dollar against the Chilean peso has fallen by 26 per cent year on year - 17 per cent in the last three months alone - but it is market activity and growing conditions too that have combined to make 2007-08 go down in history as a season the Chileans would rather forget.
Decofrut analyst Isabel Quiroz said: “It is one of the most complex seasons of recent years. High prices could not be capitalised upon at the start of the season because of the low volumes. And as exports really got going, the situation grew yet more complex, as the natural decline in prices was compounded by the fall of the dollar, which has put the industry in a very difficult position.”
The cold snap in the spring at the beginning of the season affected not only volumes, but also post-harvest quality on a number of lines, particularly grapes. And with the cost of labour rising by 35 per cent in dollar terms year on year, costs have spiralled upwards for the most labour-intensive crops, such as grapes.
Blueberry production has been rising exponentially in recent seasons, and this year, with a 70 per cent year-on-year increase, Chilean senders to the US have seen their returns fall by a third. “This has been our most problematic season,” said a spokesman for the Chilean blueberry commission. “We need to open new markets more quickly. The current rate is insufficient for our increasing production.”
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