Chile’s cherry crop is expected to be slightly smaller than the 2022-2023 crop. While the acreage continues to expand every year, weather conditions will have a negative impact on this year’s volume. “If the country had a full crop, it would be well in excess of 100 million (5 kg.) cartons this season,” says Richard Isaacs with Canada-based Global Fruit. “However, a lack of winter chill hours, cool conditions during blossom, and rain during the first couple weeks of harvest, has resulted in the latest estimate of 81.4 million cartons.”
The other cherry growing country in South America is Argentina, but production numbers are much smaller compared to Chile. “It isn’t so easy to gather accurate stats or forecasts for Argentina,” said Isaacs. “However, their production area also continues to expand, and most growing regions enjoyed a warm spring with mostly sunny weather in the first part of the season.” At the time of writing, it had just rained near Chimpay in the Rio Negro Valley, but it is a bit too early to say how seriously this will affect the volume from that region in the coming few days.
Global Fruit’s import season is in full swing and will continue through March 2024. The latest cherries the company will be importing this season will come from Los Antiguos, way down in the south of Argentina. “Harvest in this region will start even later than normal and isn’t expected to begin until the second week of January.” There is always some risk of frost during blossom, but this season passed without any problems. “As a result, we are looking forward to a great crop of late season cherries that should be available well into March 2024 in the markets we serve.”
Demand outstrips supply
Due to the late start and low volumes, demand has outstripped supply so far. “At least, this is the case in the main Asian markets - including China - that purchase more than 90 percent of Chilean cherries every season.” This has the natural effect of keeping prices high, resulting in retail points in North America restricting sales. As a result of better weather, supply is increasing, and a better balance between supply and demand is expected. This would enable all markets to get cherries at prices consumers can afford.”
The real opportunity for North American retailers is ocean freight arrivals. Ocean freight has a positive impact on cost prices, allowing retailers to hit more attractive retail price points. “With the season being later in all areas this year, we don’t anticipate a lot of ocean freight arrivals before Christmas. However, in January there will be a chance for US retailers to brighten their stores and offer their customers cherry treats.”
US is main market
For Global Fruit, their number one market is the US. “We have been serving many US retailers with Canadian cherries for more than 20 years. In the past three years, we’ve been building a strong reputation for cherries from South America,” shared Isaacs. “With the right partnerships and our own people on the ground all season, we are ready to offer the best quality cherries for a more extended period of time throughout the year. Our cherries are packed according to the highest standards and moved to retail stores very quickly, allowing end consumers to enjoy them and come back every week for more.” In addition to the US, Global Fruit also has customers in Canada, Asia, and the EU. “They trust our cherry expertise and ask us to source South American cherries in addition to Canadian ones.”
For more information:
Richard Isaacs
Global Fruit
Tel: (+1) 250-428-2320
richard@globalfruit.org
www.globalfruit.org