Iván Marambio: President of Asoex, Chile

Chile: "Supplying a 'hungry' market for cherries and, at the same time, finding new markets is quite a challenge"

While Chilean cherries, blueberries and soon table grapes are on their way to global markets, recovery from the pandemic, as well as the global economic crisis, remain concerns for the Chilean Fruit Exporters Association (Asoex). According to Iván Marambio, its president: «The threat of the pandemic is still present. Although we have seen the lifting of some restrictions locally and in markets in the northern hemisphere, China maintains some strict restrictions, which we hope will not translate into the closure of cities or the paralysis of ports.

The expert affirms that the recovery of the Chilean economy is slow, "like in other parts of the world, with the threat of a global economic crisis that remains latent. "This is likely to affect food consumption, so we are monitoring how the markets evolve and carrying out specific promotions to keep demand for our fruits active."

Meeting Chinese demand for cherries

Recent Asoex estimates show a significant increase of 20% in cherry exports compared to last season. «The sector has reacted and adjusted its supply to the strong demand for this product, especially in China. The challenge is, then, to supply a 'hungry' market for the product, especially around the Chinese New Year and, at the same time, redouble efforts to develop new markets."

«The case of grapes is different, which will soon reach the markets, and that of blueberries too. Both species expect a decrease in export volumes compared to the previous season and in line with what we have seen in recent seasons. The adaptation of the sector in these cases has focused on the substitution of varieties and today we see positive results from that effort. In the case of grapes, we see how new varieties could boost growth in the coming seasons. In the case of blueberries, this season we are seeing a significant increase in frozen exports, which is due both to market dynamics and the nature of the variety substitution process. This sector is still in a period of adjustment to the new global competitive conditions and we hope that it will stabilize and resume its growth in the coming years," explains Marambio.

Concern about shipping and input costs

«Fruit growers and exporters face strong cost pressures. On the one hand, inputs, especially those that have to be imported, such as fertilizers, have experienced significant price increases. On the other hand, they also face increases in the cost of services, where the cost of maritime freight has been the one that has most affected activity during the last season. This year we expected to see a gradual reduction in local maritime freight prices, in line with what is observed internationally. However, we were surprised by the rates announced by shipping companies at the beginning of the season. Although a reduction in tariffs is expected by the end of December, we have pointed out that these tariffs put at risk the viability of the fruit sector, the second export sector in our country, after copper," says Marambio.

Market access, key priority

Despite Chile's success in the Chinese and US markets, market access remains a key priority for its growing exports. «During this season we will focus on improving market access conditions for our fruits. Thus, for example, we hope that at the end of this season the Systems Approach will be approved so that grapes produced in the central-northern area of ​​our country can enter the US market without the requirement of fumigation, which will undoubtedly boost the competitiveness of our exports to that market.

Marambio once again focuses its attention on the Cherry Express and Blueberry Express vessels, both answers and part of its efforts to work with the Government and the sector, ensuring the movement of thousands of containers of Chilean cherries and blueberries in world markets.

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