The Chinese New Year, or Spring Festival, is one of the most anticipated dates for exporters of Chilean cherries. The Chinese greatly value this fruit because, according to their culture, it is a lucky gift: its red color symbolizes prosperity and fortune; and its roundness symbolizes perfection and eternity. Demand for this fruit skyrockets in the Chinese New Year, which in 2017 will be held on January 28, although the celebration lasts 15 days. It is a tradition that Luis Schmidt, the president of Fedefruta (National Trade Federation of Fruit Producers) and former Ambassador of Chile in China, knows well. Schmidt said that the Chinese often give each others cherries at this time.
According to data released by ProChile, Chile is the leading exporter of fresh cherries in the world. The Fruit Exporters Association of Chile (Asoex) said that Chile exported 84% of its cherry volume to the Chinese market in the 2015-2016 season, i.e. more than 70,000 tons, equivalent to 53 million dollars. In the weeks prior to the celebration of the Chinese New Year, local exporters sell on average 304 million dollars, which accounts for 55% of total sales, according to data from the iQonsulting company, which specializes in the agricultural-export sector.
This market is so important for domestic producers that they have changed the way they produce their fruits. Isabel Quiroz, executive director of iQonsulting, said that "producers and exporters have modified production practices to meet the requirements made by China. In the case of cherries, they have worked to achieve high calibers that are firm, have a dark red color, a green stalk, and no signs of dehydration." In addition, she said, producers have increased the proportion of varieties with better post-harvest characteristics that can withstand a long journey.
Asoex and ProChile work together in a promotional campaign
Between 550 and 600 million people are on the move hoping to join with relatives and friends during the fifteen days of the celebration. This year, the celebrations begin on January 28, a date that is really early when compared to previous years. However, the harvest season started 10 to 15 days ahead of schedule due to the rains that hit Chile, which is favorable for exporters as they will arrive to China on time.
The vast majority of the cherries are exported by sea. This shipment method is slower than sending them by air, but shipping them by boat has a significantly lower cost. "An air cargo cost almost 11 times more than a maritime shipment. Air shipments cost 4.3 dollars per kilo, while sea shipments costs 0.4 dollars per kilo," said Juan Ignacio Allende, export manager at Agricola San Clemente.
Asoex said the challenge was increasing the demand for cherries. For this season, the Cherry Committee of this association and ProChile have planned the biggest promotional campaign of any species in a specific market. The campaign, which costs 5 million dollars, includes actions to increase consumption in China, but also in South Korea, Japan, the United States, and Brazil.
"China is the main destination of our cherries. The Chinese New Year is the most important period for Chilean cherries because they are associated with good fortune or success, and consumers buy them as a gift or to take to their family dinners. The challenge for exporters is to increase consumption before and after the Chinese New Year," said Ronald Bown, president of Asoex.
Source: economiaynegocios.cl