Costs for Chilean fresh fruit producers are out-stripping returns, the new leader of Chile’s producers’ association Fedefruta Rodrigo Echeverría has asserted.
Speaking at the joint celebration of the federation’s national convention on October 5 and international business round table Fruittrade 2006, Echeverría said the lack of profitability on some fruit and vegetable crops is the result of a marked decline in the price of these products on international markets and in the value of the dollar.
“Today, the net return for a fruit producer gets lower and lower, and production-business owners are not in a position to pass their increasing costs on to prices in the market,” said Echeverría.
He told the audience of some 70 buyers from more than 20 countries and 200 Chilean business representatives from eight major production regions that the situation is causing a lack of reinvestment. Growers are also abandoning crops that have lowest profitability and dismissing staff.
Meanwhile, according to the Chilean national press, a disagreement between Fedefruta and the Chilean Fresh Fruit Association, which represents exporters is intensifying this week with Echeverría accusing the CFFA of failing to take a strong enough stance on oranges and easy-peelers in negotiations on a free-trade agreement with Japan. The accusation is strenuously denied by CFFA president Ronald Bown.
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