The 2024-2025 Chilean cherry and table grape export season has been marked by plummeting prices, fierce external competition, and international logistics working against it
"Chile increased its cherry export volume by 50%, but prices fell by nearly 33%. The FOB value went from an average of $30 per box to less than $20. This directly affected producers' income, especially those with late harvests. In addition, the incident involving the Maersk ship transporting fruit to China caused significant losses: the cargo was not authorized for sale in that country and had to be destroyed," stated Nicolás Michelini, commercial manager of Quelen Fruit.
The dependence on the Chinese market (the destination for 90% of Chilean cherries) has become evident. Now the industry seeks to diversify markets, targeting the United States, Brazil, and Europe. However, this transition takes time. "China is the driving force behind the Chilean cherry industry. Ensuring the quality of the product, avoiding soft fruit with low Brix levels, and focusing on producing larger sizes (from 26 mm onwards) is essential to regain competitiveness," Michelini stressed.
"The industry will not continue to grow at the 25% annual growth rate it did in the last decade. We'll grow this year, but not at that rate. Our exports will be conditioned by the weather and the quality of our production," he stated.
"The table grape season that just ended was also tough. Chile exported 5% more grapes, but Peru increased its global shipments by 32%. The United States, the main destination for Chilean grapes, received 47% more Peruvian grapes than last year. This partly explains the prolonged storage of Chilean fruit at destination, the need for repackaging, and fruit losses due to overstay. The port crisis in the United States in mid-January also led to speculation regarding inventory management, which contributed to this situation," he stated.
"Price pressure from the high volume available, rising ocean freight rates compared to the previous season, higher storage costs at destination, and the 10% tariff on entry to the U.S. have further reduced returns for Chilean producers," he added.
"Our strategy for grapes included opting for late harvest windows, using demanded varieties such as Autumn Crisp and Sweet Globe, and increasing our investment in the ability to pack final consumption formats at origin (such as cinglamshells and bags) to reduce repackaging costs and improve access to American and European retail. Our general strategy is to expand our offer (cherries, grapes, citrus, and nuts) with new products, such as Peruvian blueberries that we are growing on 400 hectares of land. We project that we'll export 3 million kilos from the initial harvest of 200 hectares that is underway."
The immediate future demands strategic adjustments. The company faces internal competition from Chilean exporters and regional competition, with Peru pressing hard. "Stability will depend on adapting to the market: choosing the right varieties, increasing productivity, and making progress in formats that give direct access to the end consumer", Michelini stated.
For more information:
Nicolás Michelini
Quelen Fruit
Chile
Tel: +569 56797837
Email: [email protected]
Email: [email protected]
www.quelenfruit.com