Chile has the ideal soil and weather conditions for the production of berries, an advantage that allows the country to maintain or increase their share of the world market for frozen strawberries.
According to the report written by Javiera Pefaur Lepe for the Office of Agricultural Studies and Policies (ODEPA) in Chile, the South American country has the opportunity to grow in this market, as the demand for strawberries is increasing worldwide due to the fruit's flavour and health benefits.
Currently, the European and U.S. markets have a high consumption of this fruit, which is why these places produce the most strawberry worldwide. However, the new ways of consuming the product, such as the ready to eat products, will allow Chile to grow in this industry.
The increase in production in greenhouses or tunnels has allowed different countries to extend the fresh fruit season and to increase the consumption of strawberries worldwide.
International trade of this fruit, both fresh and processed, has grown in recent years. According to data from Trade Map, worldwide sales amounted to 1,533,000 tons in 2013, 29% more than in 2006.
On that occasion, 53% of the volume corresponded to the wild strawberry, 38% to frozen fruit and 9% to processed or preserved strawberries.
The report also indicates that the average world price of frozen strawberry exports reached $1.5 dollars per kilo in 2013, while fresh strawberries closed at $2.82 dollars per kilo.
According to the Economic Research Council (ERS), the European countries have an average consumption of strawberries of nearly 1.6 kilos per capita a year, while consumption in the U.S. reached 3.6 kilos in 2012.
Meanwhile, the average consumption in emerging markets for the berry industry, such as Mexico, Brazil, China, South Korea and Japan, is of 2.6 kilos. These countries present a great opportunity for growth.
Today, the leading producer of strawberries worldwide is the U.S., followed by Mexico, Turkey, Spain and Egypt.
The report notes that the major countries, Spain, United States and the Netherlands, allocate more than 70% of their production to the fresh market, and the rest to process, mainly frozen. In terms of volume, fresh strawberries represent 53% of all exported strawberries, followed by frozen strawberries, with 38% and strawberries processed or preserved strawberries account for the remaining 9%.
Chile ranks ninth among exporting countries, accounting for 4% of the world market.
Regarding imports, Germany, France and the UK have a high demand for this fruit (both fresh and frozen or processed). While the American demand for the ready to eat berry category could increase.
Situation in Chile and opportunities
Chile's strawberry production takes place mainly in the Metropolitan and Maule regions (VII region).
According to estimates by the National Statistics Institute (INE), these regions account for about 80% of the national area of strawberries and the varieties that are cultivated the most are the Camarosa and Chandler varieties.
In 2013, the national area of strawberries amounted to 1,272 hectares, 17.7% lower than what was recorded in 2007. The volume produced also decrease by 17.7%.
In that sense, Chile alimentos indicated that in 2013 Chile produced 56,276 tons of strawberries, 65% of which was for domestic consumption (90% fresh and 10% frozen) and 35% was for export (77% and frozen, 16 % fresh, and the rest in juices and canned products).
Regarding this last point, the report states that the main destination countries for frozen product were Japan (21%) and USA (21%). Japan and China still have tariffs for entry of frozen fruit from Chile, however, it is estimated that the export volume will be maintained.
Currently, the new varieties and production technologies will allow the world to have a bigger offer of this fruit. Furthermore, since trading volumes are fairly stable and prices are rising, along with costs, Chile needs to improve its competitiveness to maintain or achieve a better position as an exporter of strawberries worldwide.
Thus, even though the European market is supplied by Spain, it is important that Chile considers new markets like Russia and the Arab and Scandinavian countries.
Thus, the recommendation is to handle the orchards carefully, especially in terms of efficient use of resources, not to increase costs, and improve the marketing chain.
If the Chilean strawberry industry focuses on the search for new markets, the country will increase the volume of sales, taking advantage of its soil and climatic conditions that make it possible for them to obtain a good product.
For now, the freezing industry will remain the priority for Chile, due to the distance from the main markets. Hence, using improved varieties and farming techniques, as well as having the adequate refrigeration capacity installed, will allow the country to reach more markets with an excellent quality product.
Source: Fresh Fruit Portal