Austral Blueberries Complicated by the Logistics Crisis
The 2021/22 campaign was not easy at all for blueberry producers and exporters in the southern hemisphere. This time the culprit was not the weather, which turned out to be correct for most countries. The complications arose mainly from logistics, which in the case of a fruit as perishable as blueberries, is a more than fundamental point. In the chain that goes from the crops to the supermarket shelves, everything was complicated and delayed. In the harvest there was a lack of workers, it took time to load the ships, containers were missing, the transit time was prolonged and unloading at the arrival ports was delayed. Shipments that in other years were made in 2 to 3 weeks, now took 3 to almost 4 weeks. This was clearly seen in the quality and condition of the fruit that reached the supermarket shelves with problems due to the excessive period of transit. The chains rejected the fruit, sending them to wholesale markets, where they were offered at extremely low prices. Added to the logistical and fruit quality problems is the strong increase in supply that is taking place year after year due to the expansion of the crop. The competition between the bidders grows more and more. The largest volumes come to be placed on the market, thanks to the growing interest from consumers around the world. But the great supply has its effect on prices. These are no longer at the attractive values of other years. They are balancing at much lower levels, putting the profitability of more than one company and origin at risk.
CHILE
For two decades it managed to establish itself as the leading southern producer and exporter, being able to overcome all the challenges that arose, both in terms of production, health and the market. But with the arrival of new players, such as Peru, Mexico and Morocco, the situation for Chile was complicated. These countries have the advantage of having large areas, generally having lower costs and producing blueberries in dry areas, without the incidence of rain or extreme temperatures. While Chile has to deal with frosts, heat spikes, rains during the harvest, as well as a shortage of water for irrigation. There are times when climatic problems affect the quality and condition of the fruits. In contrast, Chile has extensive experience, a good and diversified structure of producing and exporting companies, long commercial relations with importers from the northern markets, commercial advantages thanks to multiple agreements and treaties signed, as well as great support from the government. to the sector.
In order to face the growing complexity of the trade, the Chilean blueberry sector decided to devote itself fully to the export of quality fruit, raising the selection standards, limiting the varietal spectrum, towards those that best reach the markets and promoting improvements in the entire string. On the other hand, it fully turned to the production and export of organic blueberries. Frozen food is also becoming increasingly important, a sector in which Chile is the leader in the southern hemisphere.
In the current campaign, efforts were continued to be a quality supplier. But the campaign was extremely complex, with blueberries being one of the fruits that suffered the most from the constant delays in shipments. In those that managed to meet the usual times, the blueberries reached the shelves with the quality that characterizes Chilean fruit. But a large part of the shipments suffered constant delays, for which the shipping time went from 2 to 3, 4 and even 5 weeks, which seriously affected the quality and condition of the fruits.
The logistics crisis, added to the strict selection carried out by Chileans, led to export volumes not reaching the levels of previous years. They were around 105.000 tons, which meant 10% less than in 2020/21 and 5% less than the average of the last 5 years. The US was traditionally the main destination, but volumes and its importance within Chilean exports decreased. A few years ago more than 70% was destined for the US, but in the current campaign this percentage was 51%. Europe was the destination for the volumes that stopped being shipped to North America. Shipments to the old continent are increasing year after year and in the campaign that is about to end, they received 36% of the total. There were great expectations around the Far East, but progress in this region is complicated and does not show the growth that was expected. In the 2021/22 campaign, it received 11% of shipments. In the Far East, the main buyer is China, but South Korea, Japan and Singapore also gain importance.
Once again, 15% of the total exported was organic. In this segment, Chile is the absolute leader. It is also in the case of frozen. Given the problems in fresh exports and the lower stocks in the US, a higher percentage was allocated to frozen. Also in this case the participation of organic is growing. In 2021, exports reached 50.000 tons, of which 72% were conventional and 28% organic.
ARGENTINA
The history of blueberries in Argentina clearly reflects a policy in which the public sector and the social aspect were prioritized before the productive and exporting aspects. In this way a monster state was created that suffocates the productive part. This was hit hard by the regional economies. The reduction of the fruit-growing area and the drop in exports clearly reflect this lack of understanding. There are many factors that make Argentine fruits less competitive: high internal costs, tax pressure, complex labor legislation, bureaucracy, absence of treaties with purchasing countries, high tariffs, logistical problems, etc.
The 2021/22 campaign ended with an export of 8.500 tons, this is 20% less than in the previous campaign. Faced with growing competition from other countries, a sharp increase in costs (logistics, supplies, energy) and increasingly complex markets, the Argentine blueberry sector is increasingly concentrating on supplying niche markets. The most important is that of organic fruit, a production regime in which Argentina has long experience and a strong presence in many products. In 2021, 4.083 tons of organic blueberries were exported, therefore, almost 50% of the total.
Unlike the other competing countries, Argentina has its most diversified destinations. Historically, the largest volume was sent to the US, but exports have decreased and currently they receive less than half. In contrast, the participation of Europe is growing. Shipments to this continent have remained in recent years between 3.500-4.000 tons. Although Argentina can send blueberries to China, the volumes are small, given the high tariffs that it has to pay. In the case of organic, it is also Europe that receives the largest volumes. In 2021 it was 66% of the total, followed in importance by the United States. Some goes to Canada, while shipments to Asia remain minimal and punctual.
URUGUAY
As in Argentina, the blueberry business is also experiencing serious difficulties in Uruguay. It spread about 20 years ago at the height of the blueberry boom in the southern regions of South America. With this enthusiasm, it was implanted in regions that agroecologically were not the most suitable. Given the poor results, these surfaces were soon abandoned, to concentrate production in the Salto region. But also in this area climatic accidents usually happen, such as hail, drought or frost that affect the crop, to which is added high internal costs that take away competitiveness. All this led to a reduction in surface area, production and export. In the 2021 campaign, its export stood at 570 tons, considerably less than in previous years. Of what was exported, 2/3 were sent to the US and the remaining third to Europe.
ARTÍCULOS RELACIONADOS
