In recent years, the acreage devoted to the production of MD2 pineapple has suffered a drastic decline, from 5,000 hectares to the current 1,500 in less than five years.
Costa Rica's large production, the drop in international prices and growing production costs have caused Ecuadorian pineapples to lose ground in the international markets and many large companies have left the country.
"Small growers were also on their way to extinction here, until they found the Chilean market, which was very attractive because of its proximity, good prices, low freight costs and lower standards compared with first world countries," explains Roberto Castillo, sales manager of Terra Sol and president of ASOPIÑA.
Today, Ecuadorians ship 60% of their fruit to Chilean importers and, according to Roberto, Ecuador currently controls over 70% of that market, which receives a total of about 60 containers per week.
"The Chilean market can easily become saturated. This happened in April last year, when Costa Rica shipped very large volumes and the market crashed. Terra Sol has been exporting to Chile for over thirty years, but we knew that the key was to diversify our customer base. We have presence in markets such as New Zealand, Canada, the U.S. and Europe," affirms Roberto.
The domestic market is very attractive because of the "dollarized" economy, simplicity in marketing and prices, which can often compete with those of export.
"In recent years, as a result of a large decline in supply, domestic prices have increased; but this market, with 13 million consumers, is very fragile, because if two or three containers stay in port without being exported, prices sink," explains Roberto.
In any case, while most of the pineapples are marketed in nearby markets, companies like Terra Sol, with 650 hectares devoted to the fruit, are committed to producing it meeting the high quality standards of the most demanding markets, and to export it to destinations such as northern Europe in search of better prices.
"The commitment to quality and diversification is the way to go. Now is a bad time for pineapples, but growing pineapples is our profession and we'll stick to it because that's what we do best and we have faith that the market will recover," concludes Roberto.
More information:
Roberto Castillo
TERRASOL-ASOPIÑA
T: +593 999 599 899
robertocastillo@terra-sol.com
www.sistematerrasol.com