The combined surface taken by olive and walnut trees, cherries, blueberries and European hazelnuts, the five fastest growing crops in the past decade, amounts to 62,000 hectares; a similar surface to that taken by Chilean table grapes alone.
One of the reasons why growers opted for new products is because table grape prices have remained stable for years, while production and labour costs have risen, says Cristián Allendes, president of the Fruit Growers Federation (Fedefruta). "People started changing and looking for cheaper alternatives. Planting table grapes costs twice as much as planting cherries. Taking labour costs alone into consideration, it can be up to four times more expensive," he affirms.
Risks in diversification
According to the Minister of Agriculture, Luis Mayol, the ability to widen the range of fruits supplied reflects that "Chilean growers are very efficient and will always invest in what the market demands." Although there are limitations, according to SNA's Research Department Manager, Ema Budinich, because the loss in competitiveness experienced by growers, due to the weakness of the dollar, is affecting the dynamics of the industry.
Water scarcity can also affect diversification. The Government informed that the 2012-2013 irrigation season will be "tough", and that there will be 23% less water for agriculture.
Mayol explained that crops with high irrigation needs, such as blueberries, could see their growth reduced. The most affected will be those in the regions of Coquimbo and Valparaíso. Among them are avocados and citrus, such as mandarin, lemon and orange trees. These regions accumulate 26% of the 324,278 hectares planted in the country.
Source: El Mercurio