10 Trends for the future of blueberries in Peru
Cranberry production is growing at a gigantic pace in Peru. Shortly after becoming the new star of agroexportation in the country, the fruit still faces several technical and commercial challenges.
- Peru will consolidate as a supplier country in the Southern Hemisphere
In 2016 it is expected that some 1.000 hectares will be added to the existing 2.000 of the crop, according to Carlos Gereda, general manager of the Inka's Berries nursery, whose production of seedlings covers the 70% of the installed area. Of the new hectares, 800 will be installed in the La Libertad region, specifically in the Chavimochic Special Project, the surroundings of Chiclayo and the rest in the Olmos Tinajones Special Project (they are planting Agroindustrial Beta, Talsa and Agrovisión). In 2018, the surface would reach 5.000 ha and in 2023, between 8.000 and 9.000, he adds. In volume, the Association of Producers of Blueberries of Peru (Pro-Arándanos) estimates that 2016 would reach the 20.000 tons (considering an average productivity of 10 ton / ha). Sergio del Castillo, manager of the guild, reports that until last November 8.179 tons were exported, which he does not rule out could become 12.000 at the end of the season, between the end of February and the beginning of March. In this context, Peru would be one step away from reaching volume in Argentina, whose productive capacity oscillates between the 20.000 and 22.000 tons, something difficult to predict due to the impact of rain and hail in the Argentine conditions. In fact, last season exported 14.800 tons, as reported by the Blueberry Committee of that country. Thus, Peru would only be behind Chile on the map of producer markets in the Southern Hemisphere and could reach it. "If Peru is going to have 5.000 has in two years and in 5 or 6 has 15.000 has, could be producing the same as Chile (96 thousand tons) in that term"Says Sebastián Ochoa, technical and production manager of SB Berries, a Chilean firm that operates in Peru under a joint venture with Agrícola Cerro Prieto. The Peruvian offer would not compete with the Chilean offer, says Lucía Corbetto, general manager of SB Berries. On the contrary, it would complement it, he says. Even so, it should be measured with its quality (and lower acidity), especially during the months that would enter the market together, from November to February
- The varietal offer will be diversified
Although today Biloxy (free variety) leads the plantations (it represents 95% of the installed area and of the seedling orders, according to Gereda), in the coming years new varieties will begin to be cultivated in Peru. Ventura and Emerald from Fall Creek Farm & Nursery and Snow Chaser and Spring High from Sunny Ridge Nursery are already being planted. Scintilla and Millenia are also being tested from this house. In addition, international buyers and marketers Dricoll's and Hortifrut, through partner producer companies, are installing varieties from the Australian company Costa. "There will be a variation in the business model, which will focus on exploration and the replacement of the same fields with new varieties", predicts Miguel Bentín, general manager of Valle y Pampa, with 46 in operation, of which 10 has been planted with Emerald last year. Federico Beltrán, general manager of Terra Business, assures that the greater specialization in the business and the progressive positioning of Peru in the global arandanera industry has favored the investment in genetics developed for local conditions. Inka's Berries is working in that line. In the next two years, he plans to conclude a study that promises to create a Peruvian variety and improve the taste of Biloxy. They are developing it through a program representing 5 selections and 5 families from the University of Georgia.
- Prices will be reduced, but the business will continue to be attractive.
The fact that Peru manages to produce and place more than twice as many tons as in 2015, will affect prices, analyzes Gereda, for whom the volume would reach 25.000 tons. "This year there has not been a decrease compared to 2014 because we still have few kilos"Says and points out that the average was US $ 9,4 FOB / kilo. In 2014, it was US $ 9,5 FOB / kilo. "This year we have to see what is the impact of the Peruvian arandanera industry in the world market", He says. In this regard, Beltrán estimates that in the medium term (4 or 5 years) prices will be "much more conservative"(US $ 6 or 8 FOB / kilo) than current (this season reached US $ 20 / kilo FOB). In SB Berries they also recognize that sooner or later the price will decrease, they say, taking into account the Chilean experience. "The windows are falling. The south of Chile came to have prices of between US $ 12 and 15 / kilo of net return to producer about 15 years ago. Now it returns to US $ 5 / kilo, but the lower part of the curve returns to US $ 3 / kilo, and it is still interesting. Maybe in Peru there will not be the US $ 12 and US $ 15 / kilo which are now in August, September and October, but can be US $ 4 or US $ 5 / kilo of net return to producer"They say. Two variables will palliate the effect to the downside and will continue to encourage investment: the steady growth of global demand and the development of quality. "This is a business with new markets to explore and with mature markets but with a growth in demand that does not make them look mature"Says Bentín. In that sense, Beltrán warns that the key is to take advantage of high prices to develop own know-how for Peru, striving to improve the quality of the fruit.
- The durability of the plant is still unknown.
Although in Peru the plants go into production per year (the usual in other areas is that they take 3 years), it is not known when they will cease to be productive. In Chile, they count in SB Berries, there are plants that were planted in the nineties that still produce more than 20 Ton / ha. "We do not know if it will happen in Peru in a consistent manner. It is an unknown"They say. In fact, according to Redagrícola told a specialist who asked not to be identified, in Peru are seen "busted" plants as a result of a harvest that lasts from July to December. In addition, a high percentage is not reaching production levels that allow it to remain competitive in the medium and long term, said the source. In this regard, estimated the exportable performance of the properties is divided into three segments: a third oscillates between 4 and 5 Ton / ha; another, 10 Ton / ha; and the last one surrounds the 15 Ton / ha. For the source, this last third supposes a "good commercial level".
- The Peruvian season would be positioned from August to February.
Although the period of better prices for the Peruvian blueberry in the Northern Hemisphere is from August to the end of November, Peru would continue exporting until February. "The harvest period is quite extensive (5 to 6 months) unlike the behavior of varieties in the northern hemisphere (1 to 2 months). For this reason, we will have a presence in much of the southern hemisphere season, with higher returns between September and December, "says Beltrán. This position will confront the Peruvian production to the Chilean one, especially the one of big producers, Gereda points, indicating that the boys will look for to concentrate their harvests. In that direction, Bentin looks, who says he would like to reduce the 150 days campaign to 120. Meanwhile, the small season of March will continue linked to specific commercial commitments. This month the production of Mexico enters the US, favoring the Aztec exporters due to its proximity to its destination.
- Three business models are being developed around the blueberry
On the one hand, there are the independents, landowners, producers and exporters, such as Valle and Pampa, whose investment in the Berry amounts to US $ 2 million, of which 50% finances through a Swiss sustainability fund (they have the Rainforest Alliance certification). The rest, they pay for it with their own resources. There are also joint ventures between local producers and foreign trading companies, such as SB Andina, formed by SB Berries and Cerro Pietro. The first, of Chilean origin, provides technical advice from the field to the embarkation in port and commercialization. This is the case also of Inka's Berries, which was launched into production last year and partnered with the Chilean Carsol Fruit SA in the commercial management of the fruit. Although up to now the marketers have been associated to promote large projects, of more than 100 has, they have begun to think about entering into alliances with medium producers, owners of between 30 and 50 has. In this segment, several American supermarkets could enter, which, according to RA, are looking for local partners. The third business model is based on a relationship of trust with the producer to which a global marketer gives exclusive rights to own varieties. International buyers of fruit marketing, such as Driscoll's and Hortifrut, are involved in this relationship. The first is a partner of Arato Perú SA and HassPerú and the second, of Talsa. In addition to the agronomic conditions of the Peruvian coast, two more variables attract investors to Peru at this time: the maturity of the business, which makes packaging inputs such as clamshells available in the country and there is no need to import them and the labor cost lower than that of Chile or Argentina.
- Water quality will continue to be a great limitation.
Sebastián Ochoa, from SB Berries, explains that although water often has a low electrical conductivity, it contains phytotoxic salts such as chlorides, which affect the crop. "You must know what they can be. A milliequivalent of chloride raises the conductivity in 0,1. So, you can have 5 meq of chlorides, which represent 0,5 decisiemens (dS) of electrical conductivity, which in the eyes of anyone would be low (in terms of electrical conductivity), but you are intoxicating the plant with that level of chlorides in the water of irrigation"Warns the technician. Faced with this problem, indicates that the solution in the first instance is to perform ionic antagonism with other elements, accurate. In the second instance, if the level of salts exceeds levels that can be handled, reverse osmosis can be done. It is necessary to put the cost-benefit of this solution in the balance, since it requires an investment of between US $ 70,000 and US $ 150,000, more than double the initial average investment in the crop per hectare (US $ 30,000) . "It depends on the volume to be watered and what electrical conductivity the water has and how much salt you want to take out"Says Ochoa. Another problem that would become a challenge is the insufficient water availability in the lands of Olmos. The water supply delivered there would only reach to cover with fruit trees an 60% of the surface of each lot, observes the source that preferred not to be identified. Before this, expands, the producers would be evaluating the possibility of mixing the pressurized hydric resource coming from the mountain range with the waters of the groundwater, increasing the electrical conductivity, but without affecting the crop.
- Peru will improve access to the United States And new markets would open, like China.
The National Agrarian Health Service (SENASA) is working together with Proarándanos in the implementation of a pre-shipment program with fumigation at source for air shipments to the US, a market that buys 45% of the fruit. According to Sergio del Castillo, the treatment would allow access to the east and west coast to be expanded, since today it can only be exported through Philadelphia. Initially, the treatment would only be carried out in the Senasa quarantine post in Salaberry (Trujillo), since this is the only one in the country that has certified bromide chambers, he said. The first pilot project would start with the next campaign. It is also working on access to China, which Beltrán calls "the natural market of Peru". When will China be the main market? "Probably in three or five years, with varieties that allow adequate arrivals and have the characteristics that consumers want. Today, what we have is exported to Hong Kong, "he says. If the Pest Risk Analysis (PRA) is approved this year, during the next campaign, Chinese phytosanitary authorities will visit blueberry fields, which could become 60 days later at the opening, explains Del Castillo. In Asia, it also seeks to open Japan, Korea, India, Malaysia and Indonesia, which are places with high prices. In addition, exporters are interested in reaching Brazil. "It has internal production in the south, but not in the Peruvian era. We are interested because it is a large market"Says the manager.
- In the medium term, when the road infrastructure allows it, the exporting companies will gather mountain blueberries.
Beltrán estimates that the consolidation of medium and large producers will turn their gaze towards the Andes, allowing the development of a new business model for cranberry, which involves small farmers. To bet on the mountains, the area of Caraz (Ancash) would become the productive pole par excellence, estimates Bentín. Intipa Foods and Agrícola Athos, the only two large cranberry exporters located in the highlands, have been installed there. Even so, there is potential for fruit in dozens of inter-Andean valleys, says Beltrán and explains that 52 traveled between 2007 and 2010 to confirm it. However, for Gereda - as for the rest of the sources consulted - the cranberry is not a crop for small independent producers. In your case, observe three reasons: it requires a high initial investment, professional technical training and sufficient area for the crop to be profitable. Obtaining the area is difficult, not only because the property is fragmented, but because of its price, he argues. "Any company that wants to do a project has to get minimal 50 has, but the land is expensive because it has been minifudized"He says.
- The demands in health would rearrange the nursery sector.
The detection of the fungus Naohidemyces vaccinii (rust) in blueberry plants imported by Fall Creek Peru SRL last November has put the focus on the way of operating of local seedlings producers, says Gereda. "The disease can be managed. It's not that it's going to hurt us too much, but it did not exist in cranberry (in Peru). Then, plant the doubt"Says and raises:"If these plants are imported, what happens internally? ". He explains that although there are no certifications for nurseries in the country, after the alert each company must guarantee the health of its plants. In his case, he explains that every week they send samples of seedlings to be analyzed by Senasa. Redagrícola consulted Beltrán, who is a representative of the American nursery Fall Creek Farm & Nursery, about the detection of the fungus. The manager indicated that only the company can provide statements in this regard.
Results of two varieties
Emerald: In the 10 has handled, Valle y Pampa SA obtained firm fruit, with large uniform calibers (18-22 mm) and berries with good harvest wound, in addition to good taste, with Bentin.
Ventura: Beltrán explains that this variety turns out to be precocious and productive, with firm fruit of good caliber. Its productive potential oscillates between 5 and 10 Ton / ha, the double of Emerald, compares. However, it is sensitive to the chemical conditions of soil and water.
MAJES What is the potential?
Although the producers are not making projections in Majes, it is known that the cold of the pampas of the Arequipa desert would allow to improve the Brix degrees, with lower acidity rates than those obtained today on the coast.
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"Today Peru is the second producer of the Southern Hemisphere after Chile on the surface. I think that 2016 Peru will also be second in volume. One of the indicators we see is that many of the companies that went to invest in Argentina in the last ten years, are here today or are coming" Federico Beltrán, general manager of Terra Business.
"What are we looking for? Improve flavor. The taste of Biloxy has been observed. You have to raise the sweetness and lower the acidity a little. That's just because, at a productive level, it's very good, it's rustic, not very susceptible to pests and it has very good precocity. "says Carlos Gereda, general manager of Inka's Berries, about the genetic development program they run with varieties from the University of Georgia. "
"The only thing we know about Peru's blueberry is that it is a viable crop. How will be protagonist (in the basket agroexportadora) that remains to be seen" Miguel Bentín, general manager of Valle y Pampa and president of ProArcanas.
"Prices have been going down from 2013 to 2015. Reality is saying that prices are going down and that they are going to continue to go down", Sergio del Castillo, general manager of Proarándanos.
SB Berries is part of the SB Group Holding. In Peru, it operates as SB Andina, in a joint venture with Agrícola Cierro Prieto.
From nurseries to producers. Last year Inka's Berries launched into the production business in partnership with the marketing firm Carsol. The project consists in the installation of 250 ha, of which 85 would be planted this year. In 2016 they plan to harvest and export their first 100 tonnes, already committed to Europe and Scandinavia.
Source: Red Agrícola Magazine
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