The reinvention of organic cranberry

03/11/2015

While the southern part of the country aims to consolidate the production of this fresh berry, in the center it is aimed at the frozen products industry. In both cases, the demand is very high.

Eduardo Moraga In December 2013 the alarms went off among blueberry producers. The United States, the main market for that berry, announced its intention to stop imports from Chile due to the presence of Lobesia botrana in blueberry orchards. The authorities of the Ministry of Agriculture flew immediately to Washington to avoid the closure of that country. They were days when producers sweated cold.

The former minister Luis Mayol started a commitment from the North American authorities: we could continue exporting fresh blueberries between the Valparaíso Region and the Biobío Region, right at the heart of the production of that berry in Chile, after fumigation with methyl bromide. In the field of blueberries there was general satisfaction.

Of course, not everyone was happy. Fumigation with agrochemicals meant that organic blueberries in the central and south central areas would lose that condition.

Further south and north of the intervention zone, although there was no impediment to export fresh organic berries, a major economic impact was feared. Chile's offer in that category would be greatly reduced, not only in volume, but also reduce the number of weeks with shipments. Given this scenario, there was a danger that retail chains would decide not to buy fresh organic Chilean blueberries.

In total, the almost 12 tons of organic blueberries that Chile harvested annually were in danger. Going from organic to conventional, from an economic point of view, means losing about 25% of the "premium" in the payment that the first type of fresh fruit has.

However, the last export season had pleasant surprises for farmers.

The demand has not only been stronger than expected, but in some cases it is noticeably better than before the episode of the Lobesia botrana.

Heading south

As commercial manager of Huertos Collipulli, Cristóbal Duke was very concerned about the departure from the central zone of the export of fresh organic blueberries. Between the regions of Valparaíso and Biobío it is concentrated between 70% and 80% of the Chilean offer in that category.

“We didn't know how the market would react. It could be terminated due to lack of supply”, recalls Duke, whose company is based in La Araucanía.

In fact, in the post-fumigation scenario with methyl bromide, the Chilean supply of this fresh organic berry was reduced to about 3.000 tons.

Duke explains that in the new scenario, the output of relevant organic volumes was postponed from 46 or 47 weeks to 50 or 51 weeks, that is, almost one month late.

The response from supermarket chains went beyond expectations. The defendant not only followed, but prices soared in the last season. Of the 25% extra in prices on the conventional, it went to an average price that was double.

The fresh organic blueberry became a scarce product and highly valued by consumers in the United States. For gringo retail chains, this product became a differentiating element, which prompted their interest in closing contracts with Chilean exporters of berries.

Although there is only one season's experience with the "new" market, interest in organic blueberry production from La Araucanía to the south is growing. In fact, it is foreseeable that the acreage of this type of berry will increase in the coming seasons.

Duke, in any case, prefers to put the ball on the floor and emphasize that behind the southern organic offer there is an important job.

“We have climatic conditions, such as the rains, which make organic production more complicated. In addition, consumers are much more demanding with regard to quality and presentation, as they are paying much more for the fruit, which is why they demand higher standards."says Cristóbal Duke.

Frozen, the other option

If there was concern in southern agriculture, there was clear fear in the central zone. The option of going on to produce conventional blueberries was seen with rejection. For those more interested in the monetary part, it meant lowering their income. On the other hand, for whom organic production is a choice of life, it also amounted almost to a betrayal of its principles.

The only viable option was to redirect production to the frozen industry. In fact, in recent years there has been an increase in the segment of frozen organic blueberries. Of course, traditionally for farmers the option of selling to agroindustrial plants meant access to lower income.

Additionally, there was a question as to whether the market could absorb a sudden increase in the Chilean supply in the frozen berry.

However, in any case, in the last season there was a massive migration to the agroindustry.

The results were more than interesting. The return to the producer in the Chillán area was around US $ 3,5 per kilo of organic cranberry. In general terms, a level similar to what could be obtained with conventional fresh blueberries. Of course, with the advantage of having a simpler harvest and lower costs, because it eliminates the need for packing. To this we must add the possibility of beginning to mechanize most of the processes.

In fact, for some producers the incident of the Lobesia botrana it did not do anything but advance the migration of the production of organic blueberries towards the industry of the frozen, that yes or yes it was going to give in the long term.

La Lobesia botrana pushed organic producers towards the frozen.

Source: Revista del Campo