Table grapes are one of Chile's main export products thanks to the country's good climate and soil conditions as well as to the excellent crop management, which allows producers to obtain an excellent quality product.
The sector, however, is seriously threatened because it is losing production profitability and competitiveness.
According to a statement from the Chilean Fruit Producers Federation (Fedefruta), the main factors threatening the industry are the low yields due to the age of the vines, the limited availability of labour and the increase in costs.
The table grape industry has faced sharp increases in costs. The costs of inputs, energy and labour, which accounts for over 60% of the direct costs of production, have risen by 90%. Additionally, the sector's exchange rate appreciation following the years in which the dollar had a low price has caused the exportable table grapes' competitiveness rates to drop by 30% during the last decade.
Thus, FEDEFRUTA supported the formation of the Uvanova Research and Development Committee, which will focus on reengineering the table grapes' production level, promoting various solutions aimed at increasing profitability.
Currently, the producers' profitability has decreased because an important part of the 53,000 hectares of vines, among the regions of Atacama and El Maule, corresponds to old orchards that no longer yield enough production volumes, nor the quality demanded by foreign markets.
"The consequences are visible when one analyses the exports of this species in the last fifteen years," said Carolina Cruz, table grape advisor and president of Uvanova.
Cruz said the volume of exports of table grapes grew 44% between 1998 and 2003, while it only increased by 18% between 2003 and 2008. From 2008 to date, the export volume has barely increased by 2%, "it even decreased between 2013 and 2014 due to specific reasons such as the frost," she said.
"Much of the grape production area in Chile is obsolete or about to be obsolete because of how old the vines are and the profit per hectare has fallen sharply. Hence, if the industry hopes to maintain its leadership, it requires urgent structural changes, " she added.
Uvanova seeks to define productive strategies to reduce labour costs, increase the genetic pool of varieties and rootstocks, and identify technologies and postharvest processes to ensure the sector's sustainability and in the field safety.
"Grape growers of all varieties will play an important role in creating the guidelines to address the problems of each area in the country," said Cruz.
Martin Silva, director of Uvanova, said "the amount of resources invested in the fruit growing industry is brutal. We must change the way we produce and so we need a focused research to reengineer table grapes, so that the producers continue to be grow this crop and it is profitable for them."
Source: Fresh Fruit Portal