The Valley has positive commercial expectations for this fruit season. This will be reflected by the prices that the regional fruit will achieve in the overseas markets. It's necessary that this improvement be transferred to the producers, who are receiving low returns for their fruit.
There are three variables that are key to this change of scenario.
The lower volumes and lower quality of Europe's harvest are affecting the normal supply of the market. According to official statistics, there was a 21% annual fall in the production of apples in Europe, and an expected 1% drop in pears.
The parity between the euro and the dollar is positive for the southern hemisphere's sales. The year on year devaluation stood at 20%, which means that in 2018 the exporters from the Valley will earn around four dollars more per box of apple, even when their product is sold at the same price as last year in the destination markets. That is, about 20 more cents per kilo of fruit.
The Rio Negro Valley's harvest has a better quality compared to the previous season. The plants are expected to produce a smaller volume, but producers expect to market more fruit because of the good quality there is this year. That is to say, they expect to export more.
"The truth is that the season looks good compared to the last three years. There are opportunities for the apples in volume and size, and we must take advantage of that," said Damian Zetone, a businessman from the sector.
However, Zetone said, "this scenario is clearly circumstantial, the structural problems of the Valley continue and we must face them in order to develop our activity with solid foundations."
Another point that is important to highlight in this context is the possibility that increasing sales overseas could limit sales to Brazil, a market that has become more complicated in recent seasons due to the existing oversupply.
Everything indicates that the Valley should take advantage of this season to set back the loss of profits of recent years. However, it is important to note that European consumers demand high quality apples that have good calibers and a full color, something that the region doesn't have in high volumes.
The situation is somewhat different for the pears, as the Williams variety still has a demand in the old continent, as long as it has the right quality and size.