The U.S. has been receiving strong volumes of cherries from Chile this season. Although arrivals are now past their peak, 3.5 million boxes have been imported so far. "This is close to the 3.6 million boxes that were imported altogether last season and there are still about three to four more weeks left," says Ira Greenstein with Direct Source Marketing. It has been a very compressed season as the same amount of fruit arrived in almost half the amount of time.
Shorter transit times
Cherries from Chile have been moving well in the U.S. market. Both quality and logistics show significant improvements over last year. "Transit times are about seven to ten days shorter compared to last year, resulting in product arriving in better condition," commented Greenstein. On average, bulk vessels arrive in 12 to 14 days and the journey for container vessels is about 17 to 18 days.
In addition to high quality, cherries have also been moving well because of their price point. "Last season, we saw prices of $32 - $34/box while they are closer to $28 - $30/box this year." This equals $2.99/lb. at retail level, making cherries much more attractive to U.S. consumers. Strong Christmas promotions followed by continued ads in January have helped move compressed arrivals.
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Lunar New Year
Traditionally, more than 90 percent of Chilean cherry volume is exported to China with Lunar New Year being a key period for demand when cherries and other fruits are handed as gifts. However, because Lunar New Year is celebrated relatively late this year and Chile's season started two weeks early, cherry demand from China was low during the first part of Chile's season. As a result, more fruit was shipped to the U.S. during that early part.
However, from now on, shipments from Chile to the U.S. are expected to drop at a rapid pace. Three weeks ago, more than 700,000 boxes entered the U.S. while that number dropped to 300,000 boxes two weeks ago and less than 300,000 boxes last week. The rapid drop is caused by Chilean growers now sending their fruit to China for Lunar New Year, limiting availability for other markets.
Early in the season, the expectation was for Chilean cherries to be available in the U.S. market through February, maybe even into March. However, with shipments dropping sharply, Chilean cherries won't be available in U.S. stores after the third week of February, which means the season will finish two weeks early. Nevertheless, Chile's export volume to the U.S. is expected to exceed last year's numbers by about 30 percent.
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For more information:
Ira Greenstein
Direct Source Marketing
Tel: +1 (914) 241-4434
[email protected]
www.directsourcemktg.com
