The agronomist Betina Ernst, from Top Info marketing, has shared an informative analysis regarding what happened with the export of cherries to the Chinese market, where “in the middle of the year a news item fell like a bomb. News circulated on social media that Covid had been detected in a batch of imported cherries. Although this fact was never confirmed by official sources, the rumor spread quickly causing a total collapse of the market. Sales and prices fell to minimum levels ”.

Cherry, the pretty girl

The newsletter highlights that in Chile the cherry is a success story. As has been the discovery of the blueberry. The enormous possibilities offered by China and the attractive prices prompted central Chile to turn to cherry cultivation. This great challenge, of a complicated cultivation that requires the latest technology and large investments, Chilean companies assumed it to such an extent that currently the cherry is the main fruit exported by Chile. According to the report, 30% of the value of Chile's fresh fruit exports is contributed by cherries. Grapes follow in importance with a contribution of 21% -24% and apples with 12% -14%.

For the Chinese, the cherry symbolizes perfection, eternity, fortune and prosperity and is considered a luxury item that is given on special occasions. Its consumption has managed to conquer the upper-middle and upper classes of that country. Very important is the celebration of the Chinese New Year, where the cherry begins to acquire more and more importance as an ornament and gift, not only because of the qualities of the fruit, but also because of its color. Red is very important in Chinese culture.

“Chile managed to advance in this market by striving to send large cherries, excellent quality and attractive boxes. Improvements in preservation technique made maritime shipping possible, which is used in 90% of cases. Only at the beginning of the campaign and in specific situations of shortage is it opted for air shipments. In a decade the volumes sent to China multiplied by 10 ”.

The crash

But not everything is pink in the cherry world and in China, the report highlights. "The last campaign showed it very rudely."

Chronologically, the expert collects, “the campaign started in a promising way. The slow initial shipments, less use of the plane due to the pandemic and the recovery of the Chinese economy determined high initial prices. As of the end of December, arrivals became very voluminous, dropping prices below those of previous years. The greater supply did not worry, since the Chinese New Year celebration was going to be later, giving enough time for its commercialization. But in the middle of the year a news item fell like a bomb. News circulated on social media that Covid had been detected in a batch of imported cherries. Although this fact was never confirmed by official sources, the rumor spread quickly causing a total collapse of the market. Sales and prices fell to lows. This happened in the middle of the season, when there were thousands of tons in the water and in the markets that could not be sold, deteriorating or being sold with the consequent enormous economic losses. Everyone's despair was more than clear. Immediately the Chilean government together with the sector took measures. In coordination with the Chinese government they launched a strong campaign to disprove the rumor and launch the cherry as a healthy and attractive fruit. The mass media, as well as buildings in the main cities were dressed in cherry red. Consumer confidence slowly recovered and sales gradually recovered. Despite this effort, the results of the second part of the Chinese campaign were not the best ”.

Lessons

"The setbacks in China clearly showed the risk of dependence on a single market." In the remaining markets or destinations, the cherry is a fruit without special attributes. When cherries reach the northern markets they have to compete with tropical, subtropical or other counter-seasonal fruits. Few chains work them and there are not many offers or promotions. "An important part is sold through the Horeca sector or specialists, which are the channels most affected by the pandemic."

Argentine Renaissance

In the case of Argentina, the Top Info report highlights that traditionally cultivation was concentrated in Mendoza, but climatic problems, old plantations, inadequate varieties, and low yields caused this production to decline.

The resurgence of the cherry in Chile also infected Argentina, major changes were made to make this crop attractive again and the crops moved south. Currently two thirds of the production is located in Patagonia and one third in Mendoza. The new plantations were installed with the latest technology and new varieties, demanded by the markets.

“These changes are reflected in the exports that grew again. From 1.500 tons 6-7 years ago, to 6.500 tons today. Compared to Chile, they are very small volumes. But for Argentina, in which the context for fruit growing is less favorable and fruit exports are stagnant, it is a success and it is hoped to continue growing ”.

Conclusions

Betina Ernst's report indicates that the cherry business will continue to grow, as an expensive crop, requiring the latest technology and high risks. For now, China is willing to pay high prices, justifying the investment. "But the fake news that ruined part of this campaign are an alert to the new threats facing the fruit world ”.

The analysis maintains that Chile will remain as the main leader, with a volume of shipments of 350.000 tons for the 2020/21 campaign, followed by Argentina, with 6.500 tons; Australia, with 5.000 tons; New Zealand, with 3.200 tons; and South Africa with 150 tons. Peru is studying the possibilities, "but for now the agroclimatic requirements do not allow to implant the crops in other regions than the classic ones", the agronomist concludes.