China and other Asian markets have the capacity to absorb the increase in volumes of Chilean cherries, says Danny Guo, GM of JWM Asia. However, he cites quality control, channel diversification, and targeted marketing as key factors for success.
According to last season's forecasts, the Chilean cherry crop will grow by nearly 60% in the 2024/25 season. China is expected to absorb most of this extra production.
Does China have the capacity to consume the volume increase without a significant depreciation in prices? Is there sufficient packaging, shipping, and logistics capacity to handle and ship this type of volume?
Danny Guo: JWM Asia is excited about the upcoming Chilean cherry season. Together with the team from Joy Wing Mau China, we have actively prepared our distribution platforms to be leaders in cherry distribution in Asia. Last year, supply was impacted by weather conditions, so the increase this year appears even more significant. To cope with this growth, the industry has made structural investments on the production front.
Regarding shipments and logistics, significant progress has been made to avoid bottlenecks, using different ports for cherry express ships and ensuring fast distribution.
What do you consider the keys to a successful season?
There are several key factors. First, quality control is essential. As long as the shipment arrives in good condition, the fruit should continue to flow, even at lower prices. Secondly, diversifying sales channels is crucial to growing the business sustainably. Further efforts are needed to penetrate different market segments.
Finally, marketing efforts will be essential. Due to the current economic climate, consumers are more selective in their spending. Our local teams are working closely with our partners to plan these tactics, including collaborations with various retailers in the region.
Do you see other Asian markets like Vietnam, Thailand, Korea, and India absorbing a larger share of the Chilean cherry crop this year?
With the growth of sector volumes, diversifying markets is crucial. Each market has a different level of maturity. India represents a significant growth opportunity for the Chilean industry. Efforts have been made to improve logistical solutions.
Read the full article: Fruitnet
Image: Fruitnet
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