Frutas de Chile welcomed the United States Department of Agriculture (USDA)'s decision to appeal the Federal District Court of Columbia's ruling that invalidated the Systems Approach for Chilean table grapes. "This appeal reaffirms that the protocol is a technical, science-based instrument, and recognizes over two decades of rigorous, transparent cooperation between USDA/APHIS and the Chilean Agriculture and Livestock Service (SAG) in phytosanitary issues."
The appeal underscores twenty years of collaboration between Chile and the U.S. and is vital for protecting the season's operations, the Chilean fruit guild stated.
The suspension of the Systems Approach has significantly impacted the northern producing regions—Atacama, Coquimbo, and Valparaiso—disrupting the sector's economic activity, employment, and operational planning.
© Minyun Zhou | Dreamstime
Ignacio Caballero, the executive director of the Chilean Fruit Grape Committee, said this protocol was developed over more than 20 years of technical negotiations. "It was only implemented last season, but many companies have invested heavily in infrastructure, processes, and adaptations to comply with its standards. All these investments were halted when the Systems Approach was suspended, and there is a risk they will become a sunk cost if it is not reinstated."
"The scope of the protocol was particularly important for the northern regions of Chile, which produce up to 20 million boxes, with a realistic maximum of 10 million allocated for the United States. In the previous season, 2.4 million boxes were exported under the Systems Approach, with projections of a gradual increase. Currently, those shipments have entirely ceased, raising doubts about the future viability of this initiative," he stated.
As litigation continues in the U.S., companies following the protocol must revert to the traditional system, including methyl bromide fumigation. "This does not increase costs compared to the previous model, but it renders the previous investment obsolete and may lead to a loss," Caballero stated. While grape quality stays consistent under the traditional system, the Systems Approach offered logistical and commercial benefits by eliminating the need for fumigation.
The USDA approved the protocol after a detailed technical review, aiming to ensure optimal phytosanitary conditions and high-quality standards without requiring fumigation at the source for the involved regions.
It's still too early to predict price effects, but a competitive environment is expected amid ample global supply. Meanwhile, the Global Grape Group alliance—comprising participants from Chile, Peru, and Mexico—is working to boost demand and reduce impacts on the U.S. market.
Caballero underlined that the roles of the Chilean government and industry depend entirely on U.S. legal proceedings. "In any case, the USDA's appeal represents a significant move forward, confirming its technical and scientific basis," he said.
Frutas de Chile highlighted the joint efforts of a broad network of stakeholders—producers, exporters, importers, ports, and consumers—who have actively supported the protocol because of the benefits it offers across the entire chain.
Given the economic and labor impacts of this suspension, Frutas de Chile will continue coordinating and assessing next steps with all public and private stakeholders to ensure the protocol's continuity and a smooth season.
For more information:
Ignacio Caballero
Frutas de Chile
Tel: +56 9 9994 2947
[email protected]
www.frutasdechile.cl
