Quality, varietal innovation and emerging markets: new frontiers for Chilean cherries

There are always challenges to face: this is the essence of agriculture. Even when major challenges are not related to climate or health, just to name a few usual factors, the challenge is self-imposed: this is the essence of progress. In the case of Chilean cherries, the goal for this season is to reach 100 million exported boxes.

An ambitious number, certainly, but undoubtedly possible given the intense Chinese demand and the unstoppable strength of the Chilean cherry industry. It is to guide these forces and bring them to fruition that Mario Edwards takes the helm of the great ship that is the Chilean Cherry Committee, where he will replace Cristián Tagle.

Edwards is the commercial director of Agrofruta S.A. and has extensive experience in the Chilean fruit production and export sector. Since 2019, he has been a member of the board of directors of Frutas de Chile. In an interview with Mundoagro, he explained how they are preparing to reach the goal of 100 million boxes, the extent of the fruit fly problem, and the guidelines the sector must follow to maintain profitability in the coming years.

How do you see the cherry industry today?

Cherries have been the major engine of Chilean fruit growing in recent years, creating value that has surpassed exporters and producers. In the upcoming season, we may surpass the milestone of exporting more than 100 million boxes, a fact that generates many expectations about the market's reaction and also some concerns, as it implies a significant increase in the expected volume.

As for growers, we continue to see new plantings every year. Regarding exporters, there is a stable base, but at the same time, many new operators enter and exit the business every year.

On the customer side, in China, there are many new operators who are very aggressive in trying to acquire fruit; in the United States, we also see traditional importers of other species rekindling past interest at the request of their customers, mainly supermarkets.

What challenges do you foresee during your leadership? There's always talk about the need to diversify markets, but how feasible is it and what does it entail?

The committee is carrying out promotional activities that we must maintain. With the expected growth in cherry production volume in the coming years, the challenge is to incorporate new markets, as well as recover more mature ones where we have lost presence, such as Europe and the UK. To achieve this, it is essential to maintain the commitment of current partners and incorporate exporters who are not yet partners.

Talking about diversification is much easier than setting it as a goal. To involve other markets, we need to find customers and a demand that is real, not just on paper. Then, with those customers, we need to set up programs, secure competitive prices, and achieve the necessary results to create the need to increase consumption with promotional campaigns that the committee can generate.

Regarding China, it is clearly the most relevant market for Chile, due to the significance cherries hold for them and the results achieved over the years. With 90.9% of total shipments last season, it is followed at a distance by the United States with 3.4%, so it is clear that the focus is on China and will continue to be so.

 For this reason, the inclusion of new cities in the commercialization of cherries is clearly a goal that the committee has set as central for several seasons, and this is a diversification effort being made within the Chinese market. Every new Chinese city that can be included as a consumer of Chilean cherries is a big step forward.

However, there are also other markets that we have considered priorities for promotion, such as South Korea, China-Taipei, and India, as well as the United States. Let's remember that in the past, the United States was the most important market for Chile, which was lost. Today, we are working to increase consumption, with a major promotional campaign and the shipment of high-quality fruit.

India is another interesting market to watch, although it is still in its early stages, with 444 tons exported last season. It is one of our priorities, but we must develop a plan for the entire sector to tackle this market.

And within China, what is the strategy to continue growing?

The expected growth in export volumes poses a great challenge in terms of new consumers, whom we need to capture, seeking their entry into the category. We need to encourage new consumption occasions, which in turn will allow us to increase the basket and frequency of current consumers of Chilean cherries.

Last season, we defined a three-year campaign for the Chinese market, with the goal of increasing consumption, especially in those segments of the population and cities that we have not been able to reach, particularly regional cities other than the more traditional ones (Guangzhou, Shanghai, Beijing, among the most known).

The committee's vision is to inspire the “Red Moment” every day, linked to joy, and to generate an emotional connection with the consumer, making Chilean cherries a superior winter snack for those seeking to savor the simple and healthy pleasures of life.

Before this season, we continued to refine and deepen our strategy, adapting to market changes and incorporating new consumer trends. This process has been enhanced with new agencies, which will allow us to renew our campaign, both in creative design and execution.

Looking at the business – What role does quality play in the sector's sustainability, in terms of profitability?

The care for quality is essential! Without quality, business becomes very risky. This has been expressed by many customers in various markets.

It involves executing all stages of the production and export processes optimally, from field work (mainly pruning, thinning, and harvesting) to the packaging and cooling process carried out on time, so that we can ship with reliable shipping services. By meeting these standards, we will arrive with a fresher and more appealing product for end consumers.

How do you see the long-term business?

With great anticipation, because each fruit season shows us its particularities. In recent years, we have experienced extreme situations, such as COVID, the logistical crisis, or rising transportation rates, and in the end, we managed to emerge victorious. This was possible because we were united, collaborating with the authorities of each country and with our union leaders.

A new development for the upcoming season is the presence of fruit flies in areas where they have not been seen for a long time, which is creating new operational challenges for the sector.

Have new hectares of cherries entered production, or has the area remained the same or decreased?

According to Claudio Vial of the exporting company Ranco, presented at the Cherry Summit in April of this year, there are about 74,000 hectares cultivated with cherries in Chile; this figure is based on data recorded by Ciren until 2021, which was 63,500 hectares, plus an estimate of new plantings that would have taken place after last year.

It continues to be observed that in response to the uprooting of other species in areas where it is allowed, the cherry tree is always the first alternative to be considered, so the volume will continue to increase significantly each year.

How important do you consider varietal change in cherries?

The varietal change has been one of the main concerns of fruit growing in recent years, and this challenge has been repeated in other species, such as grapes and stone fruits, with very different results. In the case of cherries, we have three varieties that represent more than 82% of exports in the last season, so it is clear that there is an issue to develop, or at least discuss.

The challenge has been to find earlier varieties than Santina, later ones than Regina, but that are at the same time more productive, larger, firmer, sweeter, and that can also withstand the journey to various markets. But we also need to be very careful because in some new varieties, the harvesting dates in other countries have not been the same as in Chile, and in other cases, they have not had the necessary post-harvest treatment.

This season, we hope to see volumes of new varieties greater than those seen so far, and then we can analyze which ones might establish themselves as real alternatives to the three most traditional varieties.

The fruit fly has been one of this year's problems: how will you address the situation?

There has been great coordination among SAG, Chinese customs, and Frutas de Chile, along with producers and exporters, with trips to China, multiple meetings, and proposals to address this situation. Among the proposals accepted by Chinese customs, there was the possibility of moving fruit between quarantine areas while respecting the necessary requirements.

This will provide greater peace of mind and flexibility to the orchards in the Chimbarongo area, which will be able to package in the San Bernardo area, given that the packing capacity in the area is not sufficient for all the fruit in quarantine. Additionally, cold treatment can be carried out in warehouses, and the range of temperatures and days required for cold treatment will be made more flexible, as is done for other species from other origins.

Source: Mundoagro
Image: Mundoagro

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