Chilean cherries, an economic engine for the country's fruit industry, have suffered a significant drop in prices this year. "The market did not resist the volume sent to China. We grew by 50%, but that's 50% of 80 million boxes. In other years growth was lower and the market could absorb the supply. This time the overproduction severely impacted prices, making them fall by 50%, seriously affecting producers, exporters, and importers," stated Luis Ahumada, director of Los Olmos.
Another critical event this season was the delay in the arrival of a ship carrying 1,300 containers of cherries, due to a major mechanical failure. "They should've arrived on January 19 but did so on February 17," Ahumada said. This delay compromises the quality of the fruit, which will not be marketed as fresh and will probably have to be destroyed. "We'll have to negotiate solutions with the shipping company. However, since we are dealing with Maersk, we are confident that we'll find the best solution for both parties," he added.
To face these challenges, Los Olmos has decided to adapt with clear strategies: reduce yields per hectare, prioritize higher-caliber fruit, and improve fruit firmness. "China will only tolerate very high-quality fruit," Ahumada stated. In addition, they are exploring a diversification of markets so they don't depend exclusively on the Chinese market.
"Next year will be a test of unity for the entire industry, where each actor must contribute and respect the agreements made for the benefit of the sector. Cherries are a pillar of Chile's fruit industry. Thus, cooperation will be fundamental for their stability and growth," he stated.
"The company's grape exports have increased by 15% to 30% in past seasons, with exports mainly to Europe, North America, and Asia, and expansion into Latin America. Grapes are recovering from the effects of the pandemic and the logistical issues in the 2021 and 2022 seasons, with prices rising considerably. However, the outlook continues to present difficulties, such as rising costs, pest control, competition with other producing countries in the southern hemisphere, and the need to improve production efficiency and quality," he stated.
The table grape market has recovered after two difficult years. "Last year was the best year for prices in the last 15 years, as they increased by 30-40%", the Director stated. However, grapes remain a challenging product, with high production costs and new phytosanitary problems, such as Drosophila suzukii, which increase handling costs.
Despite these obstacles, Ahumada remains optimistic about the future. "If we do things right, 2025 can be a reasonably good year for table grapes. Every year is different, so we must be prepared for what experience tells us and, at the same time, we must be very attentive to what happens around us every day, to be able to face it in the best way," he said.
For more information:
Luis Ahumada
Grupo Los Olmos
Chile
Tel.: +56 72 2712249
Email: lahumada@losolmos.cl
Email: jahumada@losolmos.cl
www.grupolosolmos.cl/exportadora/