"The European market has not been favourable, basically because prices are low, the exchange rate has plummeted and other markets, like the U.S., offer better prospects," affirms Fernando Sat, president of the Chilean Table Grape Committee.
Fernando notes: "Our shipments to Europe are currently 8% smaller than last season, although it is also worth noting that in 2014 we had a 16% loss as a result of frosts." This would mean that, proportionally, Chilean grape shipments to the European market have dropped by 23%.
Meanwhile, exports to Russia, a major buyer of Chilean table grapes, have suffered an even greater decline.
"In a normal season, we would have already made some shipments to the Russian market by now, but the reality is that so far we have not made any and only now are we preparing the first of the season," explains Fernando.
The difficult situation in the aforementioned markets has led to large volumes being diverted to the United States, so how has the market been affected by this higher supply?
"Prices in the U.S. market have remained stable; despite the large volume, prices are better than in Europe, where they are demanding special packaging and lower agrochemical residues, and producers are not compensated by this extra cost," states Fernando.
"Some people wish to consume pesticide-free produce, and that's completely understandable, but some supermarket chains are demanding a certain maximum amount of active ingredients in an arbitrary manner. It would be much clearer if they simply demanded pesticide-free products, as this leads to confusion," affirms Fernando.
Fernando points out that Germany requires a given maximum number of active ingredients. "These standards are perceived by producers as negotiated by supermarket chains, since often they are owners or have shares in the agencies in charge of issuing certifications, which are not cheap at all. So many different certifications are currently requested that it is no longer attractive for producers to export to the European market," concludes Fernando.
Fernando Sat
Chilean Table Grape Committee
fsat@rioking.cl