Warning for low prices of blueberries

03/01/2017

Advancement of the harvest and concentration of the fruit in a short period press the markets.

The prices of Chilean blueberries in the main markets - the United States, Europe and China - are lower than those of the previous year, highlights Andrea Betinyani, director of the Information and Study Department of Decofrut.

In the United States, for example, between the 48 and 51 weeks the quotes fell around 40%, while in China they have also decreased between 9% and 10%. Only Europe has managed to maintain the values more stable, he adds.

The main cause of the phenomenon would be the abundant supply reached the destination markets, mainly the North American, to which the 63% of the total exported to date has been sent. "The Chilean season began early this year and with volumes much higher than the previous one in its first stage. By week 51, Chile completes an exported volume of fresh blueberries of around 44.187 tons, which represents an increase of 104% over the same period in 2015 (close to 22.500 tons more)», says Betinyani.

The representative of Decofrut warns that prices and sales will remain under pressure as long as the quantity on offer exceeds the quantity demanded.

In an informative, the Committee cranberries highlights the danger that a lot of route is concentrated in a few weeks in the markets, pushing prices down, and suggests that the current will be a hard and tight season, which will test as never before Chilean competitiveness.

"The productivity of the orchards and packing centers, the quality and condition of arrival and the differentiation of the Chilean offer will be key factors to get out well", He emphasizes.

EARLY HARVEST

In Decofrut they clarify that it should be considered that the increase in the volume exported to date is due more than to a growth of supply, to an advancement of the harvests.

"That is to say, the curve of shipments has advanced around 3-4 weeks this year, which indicates that in the second half of the season exports will be decreasing. And while there is an abundant supply, prices would remain low, due to the need to rotate the fruit and not to inventories. Fortunately, the general condition of arrival has not been a problem this year, which prevents the situation from getting worse", He emphasizes.

Notwithstanding the above, Felipe Rosas, director of Rconsulting SA, states that the return to fresh blueberry producer this year will move between US $ 2,80 and US $ 3,50 per kilo at the time of highest production. Not bad if you take as an example a producer who already has paid for infrastructure, plants and irrigation, which costs US $ 3 out of the US $ 2. Thus, the dollar left in his pocket represents US $ 8.500 net per hectare, considering the national average yield of 8.500 kilos per hectare.

Rosas guessed correctly with his predictions made a few months ago that the forecasts of exporting 94 thousand tons of fresh blueberries this season were not going to be met. There are two reasons for lowering the offer: the advance of three weeks at the beginning of the harvest, which in agronomic terms means either less growth or lower production compared to the previous year. And second, due to the climatic events during the season, such as high temperatures, rains that affected the late varieties and also a couple of frosts in the production area between Curicó and Chillán. All that made the production between 5 thousand and 10 one thousand tons lesser.

Meanwhile, the situation of the industrial cranberry was a factor for a greater volume in fresh, but, as it is seen, not for the prices.

"The industrial blueberry is with low price levels compared to other years, although 0.9 to 1 dollar per kilo to producer is the average paid in the United States in the last 35 years. The Chilean producer claims, but the trial does it with respect to the previous season and not with the story"Says Rosas.

The most relevant thing that happened in the market "was the violent entry, in the week 41 and 46, of Argentina, that produced a estratospheric low of the prices in the American market, that affected the Peruvian product and the Chilean, although it did not have so many volumes in the market"Says Rosas.

THE NEW FRUIT

"Cranberry production will not increase in Chile, what is being done is to substitute some orchards for varieties that are larger, sweet and traveling, which is the requirement of the Chilean export fruit"Says Felipe Rosas.

Source: Field Magazine