What is happening with the Chilean blueberries in the world?

With blueberry exports advanced by up to three weeks at the start of the peak weeks of Chile and a record of weekly dispatches during the 48 week, reaching over the 10.500 tons, the oversupply in the markets has had a considerable impact on prices and from the industry have felt the impact of a more competitive scenario.

And it is with the volume increases from Peru and Mexico, who have arrived in the US. With almost twice as much as what was exported during the previous season, the supply from the countries of the Southern Hemisphere will continue to grow, how to face these challenges? Is the increase in supply the only factor that is influencing the current scenario?

In Portalfruticola.com we spoke with Andrés Armstrong, executive director of the Committee of Cranberries of Chile to deepen more about what is happening in the industry.

According to data from the Committee of Blueberries, the 62% of shipments to date have been concentrated in North America. In Europe, large arrivals from different destinations have produced downward pressure on prices, as well as in Asia, and mainly in China, which now also has the arrival of blueberries from Peru.

What have been the main factors that have affected the 2016 campaign of Chilean blueberries?

The increase in the supply of other countries in some of the weeks where Chilean production is on the market is a fact that is here to stay. It remains to be seen how this will evolve in the future, but I think it is a fact that today not only Chile, but also in Argentina and Uruguay, we will have to live with an offer that was not there before.

The level of stocks of frozen blueberries this year had an important growth due to the increase of the production of "wild" blueberries of the United States and Canada, what impacts the increasing Chilean offer of blueberries destined to the segment of processed.

The effect of the weather at the beginning of this season, caused a historic advance and concentration of supply in a few weeks that also found fruit from other countries in the markets, this has been very complicated. The ideal is not to have very marked peaks in a few weeks and hopefully have a more even offer during the season.

What is the perception from the industry about how this season will end?

There is a lot of speculation, but it is a fact that we have less fruit as of the end of January compared to previous seasons. The weather in the last part of our season will be a determining factor in knowing how we will finish the season. The same the opportunity of the beginning of the season of other countries like Mexico and Morocco that normally, and in increasing form, are arriving at the markets at the end of our season.

What are the volumes that are expected for the next weeks? Would they go down considerably?

We maintain our estimate of 94.300 ton for the season, although that may change if in the south the climate offers better conditions for harvest than in other seasons.

If we take the numbers until today, there would be an 20% less fruit in the remainder of the season compared to last year.

What are the factors that are influencing the performance of the product in China?

If we compare this season with the previous one, the volume effect is clear. While last season our supply in China decreased, this season has had a very important increase. The effect of volume on the price is simple, the law of supply and demand works.

I think it is important to highlight the incorporation of new packaging technologies by Chilean exporters that allows them to better classify the fruit according to various factors, one of which is very important the calibers that are very important when we talk about the Chinese market.

What is the look that producers and exporters should have in view of the 2017?

Competitiveness Now more than ever, it will be tested against the offer of other countries.

Efficiency, quality, technology in various stages of the production and marketing process is fundamental. If before there were some spaces that allowed certain inefficiencies, today the scenario is much more competitive.

Promotion and positioning campaigns

Chile has played a key role in the development of blueberry consumption against season. This season we will maintain promotion projects with the contribution of Prochile in North America, Europe and Asia.

In the United States we have channeled many of the efforts to promote the actions of promotion of point of sale in these weeks with important volumes from Chile, in order to achieve a rapid movement of the fruit avoiding accumulation of inventories.

If we look at Asia, we concentrate on China, Korea, Taiwan and Japan, the main markets of the region and which have been very dynamic in the increase of consumption.

In Europe, the United Kingdom is our main market and where we implement promotional activities on a permanent basis. Last year and this we have put resources in France as a new potential market, which is responding very positively.

Source: Fruit Portal

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