This year's Chilean grape season ended with 7,6% lower exports. There seem to be decreased exports in other sectors too. There is, however, increased demand for new cherry trees in the south of the country.
Drought caused lower fruit tree demand
The Chilean tree nursery association chairperson says the persistent drought in the country's changed the demand for fruit trees. Producers in the central regions of Coquimbo and Valparaiso are postponing their investments. There's a decline in the demand for citrus and avocado trees.
Grapevines for wine and table grapes are the most significant trees nursery product. That, despite a 20% drop in demand this year. In contrast, growers in Chile's southern provinces are upping their demand for cherries trees. After production for the local market, Chile exports $36 million's worth of fruit trees. Most of these go to Peru (40%), Mexico, and Brazil.
Chile focuses on international food security
The Chilean government's imposed measures in the food supply area. This is being done on a national scale during the current health crisis. Besides this, Chile's also making waves within the international arena. Chile is actively discussing ways to keep international agri-food trade going during the current corona crisis. This is in Latin America, as well as the APEC countries.
Chile's joined a six-country initiative, led by Canada too. These countries are trying to prevent trade barriers and maintain people's freedom of movement. ODEPA's (The Chilean Office of Agricultural Studies and Policies) director spoke out in favor of international cooperation to guarantee food security. That was at an OECD meeting.
Grape producers are facing challenges together
The 2019/2020 Chilean grape season closed with 7,6% lower exports. The country's prominent grape sector has to face several challenges - the drought, social unrest, and demand for new varieties. A CORFU-led program's been initiated. In this program, grape farmers from the northern region of Atacama work together. They're trying to make the Chilean grape sector more competitive. CORFU is the Chilean government's Production Development Corporation.
Chilean-American inspection expands some products
Chile's food authority, SAG, has partnered with its American counterparts. These are the USDA's APHIS, and ASOEX (the Fruit Exporters Association). They want to ensure that export inspections run smoothly. There's been an inspection location in Cabrero since 2017. This is 500km south of the Chilean capital, Santiago.
There, agricultural products are inspected for export to the US. This year, despite the strict anti-corona measures, 3,2 million crates were checked. Mostly blueberries, apples, pears, and cherries from the country's southern regions are controlled at this site. This year, flower bulbs (tulips, peonies), onions, and pumpkins were inspected there too.
Corona crisis affecting agri-sector financing
Chileans banks are reluctant to extend new loans to the agricultural sector. That's despite governmental guarantees. Citrus producers' harvesting costs are 20% higher this season. That's partly due to the stricter hygiene regulations. The global health crisis means international sales markets aren't stable either. The banks in Chile each have different lending criteria. That's causing the lack of financial support for farmers to weather these blows. It's expected to take years before financing returns to previous levels.
Source: The Chilean Agricultural, Nature and Food Quality Ministry, El Mercurio