The Fruittrade 2024, held from October 23 to 24 in Santiago, Chile, brought together the Chilean fruit industry to discuss the most urgent issues in the local and global market. One of the key points was the South American country's flagship product, cherries, which have started a historic season with sustained production growth.
An important consideration for Chilean cherries, however, is the economic state of their main buyer: China. Chinese trade expert Gonzalo Matamala, general manager of Giddings Cerasus Asia, with over 16 years of experience in the region, provided an overview of this vital market.
To explain the current scenario in China, Matamala noted that 70% of personal wealth in China is held in property. “During the pandemic, property prices plummeted drastically, so now the Chinese feel that their wealth has also diminished,” he explained.
The decline in property values has had a strong impact on the Chinese economy, as construction has historically represented more than 30% of the country's economic growth. Export activity makes up a smaller portion of the Chinese economy, so post-pandemic, the country is experiencing a slowdown, which Matamala describes as “normal,” noting that endless growth has never been realistic.
Despite the slowdown in economic growth, per capita income is rising, indicating a financially more stable middle class. “We must understand that China is no longer a poor country, so, as all unions demonstrate, it is consuming more and more fresh fruit and food,” said Matamala.
An emerging trend in China is the decline in retail sales due to reduced disposable income perceived by consumers. However, Chinese exports remain strong thanks to massive production capacity and infrastructure, which, according to Matamala, “no country in the region can compete with at the moment.”
The drop in sales is partly due to rising rental costs, which has led retailers to explore new sales channels, such as online platforms. Urban unemployment remains around 4-5% but has risen significantly among younger generations.
“This is what should concern those of us who sell fruit the most because this segment is where we capture the most consumers,” Matamala observed. “Young people are the ones buying cherries, and if they face a high rate of unemployment, this reduces their purchasing power in the long term,” he added.
Matamala emphasized that the cherry market is always unpredictable, but he shared valuable insights. “At Giddings Cerasus, we produce and import many U.S. cherries into Asia, which had an exceptional season, so the category is in a good place,” he said, adding that a decrease in volumes has supported the rise in prices.
Furthermore, with 30% of Chilean fruit undergoing cold treatment this season, customs will face an additional challenge, requiring greater organization. “We expect nearly 6,000 containers to inspect, which could strain customs officials' capacity,” he stated.
Matamala concluded by advising exporters to monitor the price cuts by Chinese retailers aimed at increasing accessibility, as these could impact the overall price of fruit during the season.
Source: Fresh Fruit Portal
Images: Global Times
09 Jul 2024
"In Michigan, in particular, producers are looking at the largest harvest since 2018," says Lance Honing, USDA. "The national total number, 355,000 tonnes, could technically be said to be up 30 per cent from last year."
05 Jan 2024
The study covers the growing seasons from 2011/12 until 2019/20 for the development of the model and 2020/21-2022/23 for its validation. The M1 model is based on an inverse modelling methodology, M2 and M3, on the other hand, are more physiologically grounded.
20 Jun 2025
In Leuggern, a 1,300-panel agrivoltaic system is being built over a cherry orchard: shielding from hail, heat, and frost, dynamic light control, and 800 MWh annually. The “insolagrin” tech cuts pesticide use and enhances the resilience of field-grown cherry crops.
20 Jun 2025
During the 2025 Technical Tour in Spain, ANA Chile® evaluated very early and low-chill cherry varieties, already present in Chile. Selections like the promising Selection 10 and Ibergen genotypes showed excellent quality, productivity, and commercial potential.
