Over 103 thousand tonnes of blueberries (103,144) have been exported in the 2016-2017 campaign; this a 12.9% increase compared to the previous year and a higher figure than that initially estimated by the Blueberry Committee.
Some of the reasons behind this are the expansion of the acreage and the replacement of varieties with more productive ones, which have had an impact on the exported volume. Moreover, the market conditions made it possible to extend the season and continue shipping for longer than first estimated by the Committee.
For Andrés Armstrong, Executive Director of the Chilean Blueberry Committee, there is another more fundamental reason. "The most relevant factor was probably the low price of the frozen product, under pressure from the increase in the fresh volume of both conventional as well as organic blueberries. This has been especially the case for the organic ones, which until last season found better conditions in the frozen market."
The advance of up to four weeks in the start of the peak weeks observed this season was unprecedented, and according to Armstrong left them with an unpleasant feeling.
"We were not able to predict and be ready for this situation, which had an impact on the harvest, packaging and logistics processes. In the meantime, we clashed with growing volumes coming from Mexico and, mainly, Peru, in a market without promotional activities, since they are usually not considered necessary at that time. All of this led to the accumulation of stocks without the required speed of movement, pushing prices down," pointed out Armstrong.
In spite of this, after the early peak weeks, and with stronger promotional activities, the volumes remained at around 6 thousand tonnes. "This normalised the movement of the fruit and improved the price situation somewhat," stated the Executive Director.
"It is fundamental to understand the global situation of the industry"
The impact of the growing supply from other countries has been felt strongly this season, as revealed not only in the increase in the weekly supply and its impact on the commercial conditions, but also on the arrival condition of the domestic fruit in comparison with the foreign one.
In this sense, despite the positive figures, the season left more challenges than cheerful faces in the industry. For his part, Armstrong understands that "in order to make the right decisions regarding the planting and trading windows, it is critical to be familiar with the global scenario and the growth of the supply."
Armstrong added that "we must continue making progress in terms of productivity and efficiency, because the situation of growing competition is increasingly forcing us to enforce more competitive conditions. The quality and condition on arrival is critical. Today we see that our customers have more and better alternatives and that those can be compared with us."
Thus, the promotion and arrival to new markets becomes another challenge. Armstrong adds that "it will also be fundamental to know how to interpret the weekly production conditions that help define the promotional periods and use the appropriate packaging for this period, which is critical to the end result of each season.
Maule Region still dominates the industry
With a 7% growth, Maule continues to be the region with the largest share of blueberry exports, with 32,448 tonnes shipped and accounting for 31% of the total shipments during the 2016-2017 season.
It is followed by the Region of Biobío, which exported a total of 29,838 tonnes during the campaign, achieving a 20% growth and accounting for 29% of the fruit shipped.
Meanwhile, the Region of La Araucanía was the one that recorded the biggest increase in the shipment of blueberries, exporting 11,704 tonnes; 29% more than the slightly over 9 thousand tonnes shipped last season.
Asia continues to grow as destination for blueberries
Virtually all markets grew, although Europe and Asia were the most prominent after last season's setback. In the Old Continent, the volume exported grew by 14.4%, while in the Far East the increase reached 53.6%, with record figures in both regions.
Meanwhile, shipments to North America also showed growth (up to 6.7%), reaching similar levels to those of the 2012-2013 campaign; although this is an increase, the volumes to this region have remained stable since the 2010-2011 season; a different situation to that observed in Europe and Asia, where growth has been constant.
In the European market, the United Kingdom and the Netherlands recorded growths of 10% and 12.4%, respectively. In this area, one of the most noteworthy cases is that of Germany, which recorded a significant increase in direct shipments, reaching 1,291 tonnes.
In Asia, growth was driven mainly by China, where about 9,526 tonnes were exported; 75% more than last season. Korea, which remains a very attractive market, practically maintained its volume, while in Japan blueberries continue losing ground. In contrast, Taiwan is still showing great dynamism, as this market grew by 85%, already exceeding the volume shipped to Japan.
In North America, the United States received most of the volume produced in advance, which, together with the greater volume from Peru and Mexico, reached the market in mid-December with a low promotional level. This led to an accumulation of stocks, slow sales and low prices; an important factor if one takes into account that this market is the main one for Chilean blueberries.
"There was a significant increase in Peru's supply, with peak arrivals coinciding with the beginning of Chile's peak weeks. Mexico has a more permanent presence during the season, although with lower weekly volumes, which grow more strongly at the beginning of March, coinciding with the end of our season," explained Armstrong.
Source: SimFRUIT según Comité
