The Chilean cherry industry, which in recent years has experienced extraordinary growth, is now facing a new challenge: managing production expansion and rebalancing supply.
According to Antonio Walker, president of the Sociedad Nacional de Agricultura (SNA) and former Minister of Agriculture of Chile, the sector could soon begin a significant reconversion process to address the risk of oversupply.
With more than 80,000 hectares of cherry orchards planted in the country, the debate is no longer focused solely on expanding acreage, but increasingly on product quality, fruit size and orchard efficiency.
The latest campaign has highlighted several challenges for the Chilean cherry industry. According to estimates from the association Frutas de Chile, during the current season the country is expected to export around 114 million boxes of cherries, of which 98 million are destined for the Chinese market.
This strong concentration of shipments toward a single market has generated an oversupply in China, leading to a decline in prices. Walker described the season as very difficult, highlighting the imbalance between exported volumes and the ability of the main market to absorb the entire production.
Despite exceeding the threshold of 100 million boxes exported for two consecutive years, economic returns have not satisfied many producers.
According to Walker, the first step in the sector’s adaptation process will be the reconversion of less competitive orchards.
In particular, attention is focused on:
In an increasingly competitive scenario, orchard productivity also becomes a decisive factor. Walker indicated that orchards with yields of 8,000–9,000 kg per hectare are no longer sustainable, while the goal should be to reach about 15 tons (15,000 kg) per hectare.
Another key element concerns fruit size: the industry’s objective should be to obtain about 75% of production with size 2J or larger, a standard now required by premium markets.
During his remarks, Walker also raised a topic likely to spark debate: the adjustment of cherry acreage in Chile.
According to his assessment, the country may need to reconvert or remove between 25,000 and 30,000 hectares of existing orchards in order to bring supply back to more sustainable levels.
The objective would be twofold:
Walker emphasized that this type of transformation is not unusual in the Chilean fruit sector. In the past, similar processes have affected crops such as apples, table grapes and kiwifruit, marking phases of evolution within the industry.
The message coming from the president of the SNA is clear: the Chilean cherry industry is entering a phase of maturity.
After years of extremely rapid growth in acreage and exports, the future of the sector will increasingly depend on quality, varietal selection, fruit size and greater production efficiency.
In a global market where demand remains strong but increasingly demanding, Chilean cherries will need to focus on higher standards and more sustainable production strategies to maintain their international leadership.
Source: redagricola.com
Image source: Antonio Walker, Redagricola
03 May 2024
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