The oversupply of cherries caused prices to plummet, affecting the sector's profitability. Meanwhile, apples have shown greater stability and opportunities for expansion.
"The recent cherry season faced difficulties due to Chile's high production volume, which saturated Asian markets and caused prices to fall by more than 50%. Today, the landscape is changing. For the business to be profitable, there should be around 70-80 million boxes in China, but this year 130 million boxes were shipped to this destination, which considerably affected prices," stated Manuel Morales, CEO of Agusfrut.
"To deal with this, exporters have opted for strategies such as prioritizing larger calibers for the Chinese market and exploring new trade alternatives. However, expanding to other markets takes time as it's necessary to generate a culture of consumption," Morales stated.
In contrast, apple exports have gained relevance. "Market diversification is key this year and, for the first time, Agusfrut will send fruit to India, a market with booming demand," Morales said. "Agusfrut's main export destinations have traditionally been Latin America, with Colombia, Brazil, and Venezuela as the main recipients. However, the opening of the Indian market and the strengthening of shipments to China are opening up new opportunities. India has a great demand for apples and the Chilean supply can satisfy it," stated the CEO of Agusfrut.
Apple prices are much more stable than cherry prices. "Five years ago, a box of apples cost between $8 and $10. Nowadays, the value ranges between 19 and 20 dollars, which has transformed the dynamics of the market," Morales said. Furthermore, unlike cherries, apples have a longer marketing season, which facilitates their distribution at different times of the year.
"The company estimates that it'll export 1.5 million kilos of Gala, Granny Smith, Red Delicious, and Fuji apples in 2025. That's a significant increase compared to the 600,000 kilos exported in the previous season. Fortunately, 85-90% of the production comes from our own plantations, which allows us to better control quality and supply," Morales stated.
"Cherries must be shipped immediately, but apples can be conserved and distributed in a more flexible way, which provides room for maneuver in the face of demand fluctuations," the CEO added.
For more information:
Manuel Morales
Agusfrut
Tel: +569 92494438
mmorales@agusfrut.cl
www.agusfrut.cl