On 20 May, Chilean and Chinese authorities met in Santiago de Chile to negotiate an expansion in the export of Chilean products to the Chinese market.
Juan Enrique Lazo, general manager of the Hass Avocado Committee of Chile, welcomed the agreement and said that "as regards avocados, the most noteworthy aspect is the establishment of a 27.2 kilometre quarantine radius upon detection of a fruit fly outbreak in Chile, which should bring the end of quarantines in the Valparaiso and Metropolitan regions, which account for 80% of the production." He adds that "avocados are acknowledged as non-hosts of this fly, which will allow Chile to export with lower costs and requirements."
As for the new agreement signed with China and the potential that this may represent for Chilean exports, Juan is cautious and says that "there is still little experience when it comes to exporting avocados to China; last year, we only exported one container," and adds that "due to the conditions that the avocados have to meet to maintain quality after 42 days of freight to China, we also don't expect to ship much."
"Chilean avocados have a good reputation thanks to the country's dry climate, unlike Mexico and Peru, which have more moisture and diseases." Juan believes that these special conditions will help in the positioning of Chilean fruit in the Asian market, which he believes pays good prices, "with comparable returns to those achieved in the best weeks in the European market."
When asked about the current export season, he tells us that "good prices have been registered in the season that is about to end, but production has been low, affected by the cold spring of 2013 and droughts, especially in the 4th and 5th Region, which had to declare an emergency status," taking a considerable toll on production.
When it comes to next season and the exponential growth expected for avocados by the general manager of the Avocado Committee, he states: "For the coming season, which starts in July, we expect to export about 100 million kilos, which is a significant increase, although we won't yet reach the 130 million kilos of the 2013/14 campaign."
Juan stresses that avocado prices are expected to remain high for the coming seasons due to demand growing at a faster pace than supply in Chile and other producing countries.
"In the coming years, production is expected to grow in volume, but I don't think it will be easy to expand the acreage, as even though the drought may pass, producers in the affected regions will be very cautious when setting up new plantations for fear of suffering new water shortages," he concludes.
Juan Enrique Lazo R.
General Manager
Hass Avocado Committee of Chile AG
jlazo@paltahass.cl
T: (56-2) 2334 5189