In an in-depth analysis of the current situation facing the fruit industry, Iván Marambio, president of Frutas de Chile, pointed out that the sector is immersed in an extremely complex global context, characterized by the vulnerability of the institutional rules that traditionally regulated trade between nations. Marambio made these remarks during the recent IFPA Breakfast Seminar, where he spoke on the "Global and Local Geopolitical Situation."

The leader of the fruit growers explained that, for several years, treaties and diplomatic agreements that provided stability to the markets have been systematically violated, leading to a scenario of uncertainty where deregulation policies, geopolitical rivalries, and a sustained increase in supply costs prevail, which now even threatens food security in the northern hemisphere.

"Today, incredibly, we are experiencing the highest number of wars or armed conflicts in the world since World War II," he pointed out.

Marambio emphasized that Chile is caught in the middle of a strategic dispute between major powers. According to the leader, this situation has had direct effects on logistics and market access, noting that Chilean industry has had to act proactively at a global level and in conjunction with the authorities.

The leader called on the industry to focus on quality and self-regulation. Marambio was critical of the lack of common standards for some species and emphasized that Chile must present itself to the world as a source of excellence. In this regard, he underscored the importance of market diversification, supporting the Foreign Ministry's efforts to strengthen ties with India and other destinations that would reduce dependence on traditional partners in an increasingly fragmented world.

© Fruits of Chile

Costs

The president of Frutas de Chile's statements regarding costs focus on a scenario of sustained price increases and logistical disruption. He warned that the conflict in the Strait of Hormuz directly affects energy (oil) and fertilizer costs, noting that 20% of the world's oil and up to 30% of its fertilizers pass through that area. He described the effects of the price hikes as "tremendous," observing that in the Northern Hemisphere the increase is so high that there is already talk of risks to food security, as supply chains prefer not to operate due to the complexity of reaching their destinations.

Along the same lines, the union leader projected that freight rates could be even higher than during the pandemic if the current conflicts persist.

He also estimated that the impact of rising costs in Chilean processes (from the field to the plant and from the plant to the port) represents between 30 and 70 million dollars per season for the industry.

Chile seeks its path in the global blueberry industry

Within the framework of the expert panel organized by IFPA, leaders from the agricultural sector analyzed the complex scenario facing the industry. blueberry In Chile, marked by a season of mixed results and the urgent need to renew its varietal offerings. Andrés Armstrong, executive director of the Committee of Blueberries The Chilean Fruit Association moderated the panel. He opened the discussion by analyzing the duality of the recent campaign. The executive highlighted that the current mood is positive after a campaign of good prices, but warned that quality remains the main challenge, and Chile is racing against time.

The panel included Sandra Wenz, Commercial Manager for Asia and the Middle East at Hortifrut Chile; Matías Alessandrini, Commercial Sub-Manager at Lafrut; and José Gallo, Commercial Manager at Fall Creek Chile.

© Fruits of Chile

Armstrong began the discussion by posing the central question: How can Chile reconcile this season's market opportunity with the renewal process it is undergoing to become more competitive? He explained that the Committee's analysis revealed that, while the volume of high-quality fruit increased thanks to new genetics, the high demand also led to the export of traditional varieties that would not normally have been exported, thus increasing the number of fruits deemed non-compliant.

In response to this challenge, professionals offered different perspectives, such as addressing the situation through operational efficiency and supply chain integration. Matía Alessandrini believes the industry should focus on three critical points: production, exports, and an industry-wide vision. He emphasized the importance of better understanding costs, modernizing agricultural practices, and ensuring companies do not maintain obsolete varieties, describing the 15% of non-conforming fruit detected in the recent season as "brutal." He also called for aligning producers and exporters, asserting that added value lies in consistent deliveries and fulfilling international commitments.

© Fruits of Chile

The panel also analyzed the technological gap and the speed of genetic renewal. When asked about the impact of advanced selections, José Gallo explained that validating varieties in Chile takes up to 16 years due to local climatic and post-harvest requirements. He added that they are currently working with advanced selections tested directly in the field with producers to accelerate these processes and capture the value of new consumers who demand superior genetics. He also highlighted the potential of potted plant projects that are already achieving significant yields from the first year, emulating the precocity of foreign competitors.

Gallo acknowledged that royalty fees and initial investment are significant barriers. Therefore, he mentioned that they are working on pricing structures and business models that will allow for a lower initial burden for producers, recovering their investment in the future as the project matures and increases in volume.

The profitability of the replacement crop was another key point discussed. In this regard, Sandra Wenz explained that Hortifrut's sales team is aiming to direct the new varieties toward premium programs, especially in Asia, where customers are willing to pay higher prices for a superior and consistent product. However, she cautioned that the industry is still learning to manage these new varieties, which offer very different financial and production results compared to traditional ones.

Wenz cautioned that genetic renewal alone does not guarantee success, as "it's not just about replacing plants." He emphasized that not all growers achieve the same results with the same plants, making consistency in management and sharing information about best and worst practices crucial for improving nutrition and harvesting frequency.

Finally, the panel concluded with a warning against complacency during periods of temporary high prices. The experts agreed that traditional varieties have already become secondary and that the market simply no longer wants them. Their final recommendation was clear: Chile must take advantage of its natural production window and renowned flavor, but it must do so in conjunction with accelerated genetic renewal and transparent communication throughout the supply chain to ensure its continued presence in the global market.