According to the "Market Cherries" report published in April 2012 by ODEPA, and prepared by Jaime Bravo, for the 2001-2010 period, during the decade, Chile has had an important development in the fruit industry, which, now foresees good levels of production and export worldwide.
Meanwhile, Chile is in the eleventh place among the major world cherry producers. But is in the third place among the twelve largest cherry producers in terms of production growth in the decade, with a 111% increase, behind Uzbekistan (265%) and Hungary (215%).
In terms of exports, the country ranks as the third largest exporter of fresh cherries (13.2% of the world's total) according to the volume exported in 2010 and according to the analysis made by the International Trade Centre (ITC). Chile is second only to Turkey (19.4% share) and U.S. (19.1%).
According to ODEPA's document, for returns, Chile ranks in second place, behind the United States, because national cherries manage higher values around the world, by being in the counter season.
However, the volume of fresh exported cherries in Chile has grown much more than the world´s average. Between 2001 and 2010, the Chilean increase reached 390% well above 74% of the world's exports.
The study shows that among indirect competitors which Chile confronts in the world market of cherry exports, the main developments and progress are seen in northern hemisphere countries, particularly in Europe.
In this scenario, the sectorial of ODEPA emphasizes that the industry faces the challenge of maintaining and increasing this leadership in an increasingly competitive world, for which "an effort at all levels of the chain, to improve the competitiveness of the sector," is required.
Among the challenges to be faced are the new conditions resulting from climate change and new market requirements such as carbon footprint, water footprint, fair trade, organic products, social responsibility of the company and others. To
do this, specific scientific and technological development programs will be required at all levels of the value chain, from production to consumption, with high demand for innovation, to compete with the most efficient producers worldwide.
"The industry has substantially improved its competitiveness in the productive aspect, improving varieties, production by hectare and percentage of exportable fruit. The industry must develop new packaging, incorporating new technologies
in production processes, to innovate in their marketing strategies and trade; topics that are all listed as some of the challenges the industry faces in the medium and long term," according to the analysis.
Also, to improve the competitiveness of the industry the factors that influence in a very relevant way need to be addressed, like the exchange rate, the costs of energy, irrigation and public infrastructure; topics covered in the table of competitiveness supported by the Ministry of Agriculture.
Training to improve the productivity of labor appears as another key for further progress in improving the competitiveness of the industry, given the high share of labor in the cost structure of the sector. Another issue to address is the high dependence on a few markets that capture the largest share of Chilean fresh cherry
exports (the top five account for almost 90% of exports).
Source: Odepa