Projection of season 2020-2021 Berries with high demand
Aquiles Conejero has high expectations. At the end of this month the strawberry harvest begins. Then the blackberries and raspberries will come. Where he lives, in Vilcún, La Araucanía Region, until a couple of years ago there was almost no experience in the cultivation of berries.
“Our community is becoming a pole in the area. There is a lot of work that has to be done and the families cannot cope. Fortunately in the territory we are in, there are many communities and they come to support us. You work to deal with them ”, he explains.
Conejero has been a lonco in the José Ángel Epueque Mapuche community for 14 years and is taking one of the most daring steps of his administration. After an agreement with Frutícola Olmué, an exporter of frozen berries, which assured it technical support and purchasing power for its fruit, part of the community launched last year to plant berries. In 2019 they had an incipient production of strawberries, to which this season will be added the entry into production of raspberries and blackberries. Thirteen of the thirty families in the community already have their own gardens
In the José Ángel Epueque community there are already 3,9 hectares of strawberries of the albion variety installed and it is expected to harvest about 156 tons in the 2020-2021 season. In raspberries, which are of the meeker variety, they add up to 11,1 hectares and an estimated production of 22,2 tons for this year; to which are added 7,4 hectares of cultivated blackberries of the Navajo variety, which should exceed 22 tons.
“Strawberries are quicker to go into production. The families that planted blackberries and raspberries see that those who opted for strawberries already have results. However, this year looks auspicious for everyone. Although we have not had official communication with the company that buys us, it is said among farmers that prices should be good, ”says lonco.
Aquiles Conejero and the rest of the Chilean producers of strawberries, raspberries and blackberries have reasons to be excited. In the case of strawberries, in April — at the end of the last season — producers received up to $ 950 per kilo of the latest available fruits, when they usually receive between $ 650 and $ 680 per kilo.
“The strawberries are being very 'poleleados' by the purchasing powers. I've had something similar to see with raspberries, ”says Michael Cerda, general manager of Fresh Group, a berry intermediary.
In fact, the executive affirms that strawberry farmers have closed record purchases for plants with the nurseries, betting on growing in area in the new season.
In the case of blueberries, after a bad season last year, this year expectations are more positive, despite the strong increase in exports from Peru. Is that berries have unexpectedly benefited from changes in consumer habits after the coronavirus pandemic. In the case of strawberries and raspberries, some production difficulties have also been added in the northern hemisphere.
Firm consumers
Juan Ignacio Allende is used to the ups and downs of the berry business, after all he is the corporate general manager of Hortifrut, one of the largest berry marketers in the world.
However, Allende is amazed at what he sees these days.
“The global demand for berries has surprised us by its strength. Consumers continue to seek and prefer products that are beneficial to health. This happens with berries, due to their high level of antioxidants and vitamins. During this pandemic, many of these foods have experienced an increase in consumption, ”says the executive.
Allende explains that in the case of fresh berries, the demand is comparable to that of previous seasons in which there was no pandemic. Although consumption has dropped significantly in the food service channel, such as restaurants, hotels or casinos, the executive explains that household consumption has grown a lot, which has a positive impact on the sales of supermarkets, which are the channel most important sales for fresh berries.
“Regarding frozen berries, we even see an increase in demand compared to previous years, which is explained by the convenience and storage advantages that these types of products present in the event of possible confinements”, Allende concludes.
Strong consumer interest is more than welcome. It must be remembered that the last blueberry season was mediocre for farmers, hit by increased competition from Peru and, above all, by the brake on shipments to China due to the strict quarantine that that country followed after the outbreak of the coronavirus .
Jaime Roessler, general manager of Frutícola Olmué, argues that blueberries, strawberries, raspberries and blackberries have an advantage because of the way they reach consumers.
“People have become more sensitive to health issues. When you buy fresh berries they come in clamshells and when they are frozen they are in bags. That is, there is no greater manipulation in the supermarket. That's highly valued, ”says Roessler.
The executive explains that in the case of frozen berries, what is bought is what is consumed. There is no loss of products if use is postponed. “That is very relevant given the economic problems that almost all countries have. People today use their money more carefully ”.
The demand for Chilean berries is being felt. For example, in the case of frozen strawberries, accumulated exports until August reached 42 thousand tons, equal to everything that was exported in 2019. There is still a third of the year to sell.
Blueberries with sustained demand
Although the winds are blowing in the 2020-2021 season, each berry sails at its own speed. In the case of blueberries, which with 18.375 hectares is by far the largest area, a less complicated scenario is observed than last year, but it is not enough to uncork champagne.
The Blueberry Committee projections are that 111.500 tons should be exported this new year.
“Chile is stabilized in blueberry production, the small variations observed each year come from the change of varieties that is taking place and a slight net increase in hectares. Only a 2% increase in fresh exports is projected for next season compared to last season. Mainly due to a greater availability of water, especially in regions V, VI and VII. There is also a higher productivity of new orchards, although this is 'netted' with some observed uprooting of less productive varieties or orchards that have already reached their useful life. Meanwhile, the approval of the System Approach may generate a greater volume destined for fresh export because the detrimental effect of fumigation with methyl bromide at destination disappears. It will also produce a greater flow of organic supply to the US, ”says Isabel Quiroz, executive director of iQonsulting.
In any case, the last word is the weather, which last year played a trick with a very hot summer.
Quiroz highlights that in terms of demand, blueberries have been a privileged species in pandemic sales and that he expects this trend to continue after the pandemic. “However, we must be attentive to new marketing channels and the adaptation of packaging formats to those channels. Its sale in clamshell adapts to online marketing and in a pandemic this channel has exploded "
The big question, as in recent seasons, is the role that Peru will play. Producers in that country are at full throttle. While last year they exported 120 thousand tons of fresh blueberries, the projection for 2021 is that they will exceed 165 thousand tons.
At the end of September, Peruvians had sent almost 38 thousand tons to the United States, their main market, with an increase of 47% compared to the same date in 2019.
“The big question is how the market is going to react to those higher volumes. So far it has not been felt ”, says Sebastián Carmona, general manager of the exporter Carsol.
Consumption in the United States of blueberries, both fresh and frozen, has gone from strength to strength. Of course, for Chile what happens between October and December with the Peruvian offer will be key.
Peruvian growth, if anything, is closely followed by farmers in Florida and Georgia. Oregon and Washington. They recently requested an investigation from the US government. It is argued that the offer from Peru, which hits the closure of the northern hemisphere harvest, added to the early imports from Mexico, hurt US companies.
In Chile, whose offer does not conflict with that of the United States, it is understood that the measure against Peru and Mexico may also reach our country. That is why the Undersecretary of International Economic Relations, together with the Blueberry Committee, is working on hiring a law firm to study the possible implications. Coordination with the authorities of the investigated countries will also be sought.
“If there is a limitation to exports from Peru, Chile's position in third markets may be damaged, since it is possible that blueberries will be derived to those countries. In any case, we believe that the investigation will take a while and should not have an effect on the current season, ”says Felipe Silva, president of the Blueberry Committee.
Strawberries always ready
Michael Cerda is clear that to any market stimulus, strawberries are the berry that responds the fastest. Its cycle from planting to harvest can be one hundred days.
That is why it is not surprising that the price hike in the last season boosted strawberry plantations in 2020-2021.
In industry sources it is estimated that in the new season between 2.600 and 2.800 hectares should be planted. The main nucleus will continue in Melipilla, San Pedro, Leyda, Santo Domingo and Litueche, on the border between the Metropolitan and Valparaíso regions. However, Chanco and Ñuble would strengthen their position and La Araucanía would begin to show interesting growth.
“You see a lot of interest from the strawberry growers. It is a crop that has become very professional in recent years and a good producer can obtain very high yields, ”says Cerda.
Benjamín Zschau Villagran, director of the Llahuen Experimental Center, believes that the transfer of knowledge and the arrival of new varieties, such as Monterey, have strengthened the business.
The final word, yes, the foreign markets have. About 40% of the Chilean strawberry production is going to be frozen. An increase in the prices paid by agribusiness derives more raw material there. Incidentally, it raises prices for fresh strawberries in the domestic market.
"What happens to the surface does not affect much, since it is exported in an important way. What has happened this year is that world stocks of strawberries have dropped, which gives peace of mind that they will continue to export, ”says Zschau Villagrán.
Meanwhile, Michael Cerda believes that returns to grower over $ 750 per kilo of strawberry are perfectly possible in the new season.
Raspberries revive
"The raspberry had been punished for several seasons. 15 years ago Chile was relevant in the world in this area. However, it began to have low prices for farmers, added to poorly productive orchards. In fact, there are no big raspberry operations left. However, in the last two years the price has risen ”, says Jaime Roessler.
The bad prices that hit Chile also put farmers in Eastern Europe and the US, Chile's main competitors out of business.
Now the market is playing in favor of the Chilean raspberry trees. In the last season, producers were offered between $ 1.400 and $ 1.500 per kilo of frozen production, when it usually ranged around $ 900 to $ 1.000 per kilo.
“In the last season, the demand for frozen raspberries was such that there were buyers willing to take split fruits, which they usually do quite a bit of,” says Michael Cerda. He foresees that, given the interest of international buyers, in the raspueseros the streak of good prices will be extended.
