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US: Frost cuts into apple imports from Chile

Frosts earlier this season affected the apple crop in Chile, and, subsequently, affected volumes of fruit imported into the United States. Amid continued robust demand for apples, pricing has remained strong.

The majority of apples imported into the United States come from Chile, and weather-related difficulties made for a reduction in the volume of fruit arriving this season. Specifically, frosts in growing areas located in the centre and northern regions of Chile affected sizing, noted Robb Myers, vice president of sales and imports for Columbia Marketing International.

“It was a difficult year for growers in Chile because some areas were affected by severe frosts,” said Myers. “So fruit sizing was down significantly this year, and we've really battled this season on trying to fulfil our program needs.” Because CMI runs programs that require certain-sized fruit, the lack of larger sizes made it difficult to provide enough fruit for those programs. So the lack of sizing also meant a lack of volume for importers. Myers estimated that volumes have been down this year by about 30 percent from the previous year, though new programs that include smaller sizes probably helped make sure that figure wasn't larger.

The anticipated drop in volume made for stiff prices early in the season, and those prices have remained steady. Myers noted that prices for Galas have been in the range of $38 to $40 per box. Prices for organic apples imported from South America have also remained strong.

“Prices have been really high,” noted Addie Pobst of Viva Tierra Organic. “We've imported more fruit this year, our volumes are up, and yet there doesn't seem to be enough fruit.” Pobst estimated that their volumes of imported apples have increased by 25 percent over last year, and still prices have remained high. She attributed the market situation to strong demand. Viva Tierra imports from Argentina as well as Chile, and Pobst explained that the difference between fruit from those countries has to do with the sorting techniques each nation's sorters employ.

“The biggest difference is in the grading,” explained Pobst. “They'll pack three or four grades in Chile, sorted by colour and defect level; they're very well developed in being able to sort apples. In Argentina, the quality of apples is the same, but you'll see just two grades. Argentina packs have low defect but more variation in colour, while apples from Chile are more uniform in colour.”