"Last year, cherries faced significant challenges because a record volume of exports put downward pressure on prices. With such an abundant supply, growers need to focus on shipping only the highest quality fruit. Smaller sizes should be phased out in favor of larger ones, which are more appealing to the Asian market," stated Pedro Pablo Budinich of Green Agro.
"This strategy is essential for maintaining the prestige of Chilean cherries in China, the main destination that consumes most of the production. While diversifying into India, the United States, or Europe is possible, none can match the volume demanded by the Asian giant," he said.
© Green Agro
"Weather conditions are creating some uncertainty this season. In the central region, especially in Rancagua, frost could reduce production, though estimates are still being prepared to assess the impact. Additionally, the sector aims to increase profitability through an agreement supported by Frutas de Chile, which discourages exporting small-sized fruit to China," he said.
Green Agro plans to start exporting cherries in early December. The company anticipates a season with high-quality fruit and longer marketing opportunities, especially because the Chinese New Year falls later this year.
The company has focused on varietal innovation in table grapes. "Green Agro continues to grow traditional crops like Red Globe and Crimson Seedless but has also added patented varieties such as Sable Seedless, Sweet Globe, and Autumn Crisp, which perform exceptionally well in international markets. We are replanting 17 hectares with these new green varieties, representing the future prospects of the business," Budinich stated.
The United States remains the main destination for Chilean grapes, followed by Europe and Mexico. Despite growing competition from Peru, Chile maintains its market share due to the quality of its grapes and the favorable sales window it enjoys in the United States.
"Prices were favorable in the 2023-2024 season due to weather issues in the United States and Peru. Last season yielded satisfactory returns. For our company, the next grape season is expected to start at the end of February and run through March, with positive outlooks depending on stable weather and market conditions," he said.
The domestic market only buys fruit that does not meet export standards, resulting in much lower prices than abroad. "That is why our strategy is focused on quality and meeting the demands of the most selective markets. We practice careful field management, including selective thinning and pruning, to ensure the plant concentrates its energy on producing fruit of the best size, color, and condition. We also enforce strict control during harvest and post-harvest stages, prioritizing fruit with the best organoleptic characteristics and transport resilience," he concluded.
© Green AgroFor more information:
Pedro Pablo Budinich
Green Agro
Chile
Tel: +56 9 8341 8971
Email: [email protected]
www.greenagro.cl
