The cherry industry: financial pressures and legal risks in the export supply chain

13 May 2026
11

After two consecutive seasons marked by oversupply, declining economic returns, and strong concentration on the Chinese market, the Chilean cherry industry is undergoing a rebalancing process that is beginning to affect the financial stability of operators across the sector.

The sustained growth in exports has not translated into higher revenues. On the contrary, the deterioration in returns, even in a context of historically high volumes, has generated significant pressure on the liquidity of growers and exporters.

Although the latest season shows signs of volume adjustment and a slight recovery in prices, current levels remain insufficient to restore previous profitability conditions.

What is changing

Market rebalancing does not only concern prices or margins. Its cumulative effect is beginning to be reflected in variables that directly affect the ability to meet existing obligations:

  • significant reduction in revenue per hectare;
  • persistent pressure on cash flows;
  • greater financial exposure across the different links of the supply chain;
  • growing tensions in the payment chain.

This shift in conditions introduces a new level of risk for the sector.

Legal implications: risks beginning to materialize

Financial deterioration is creating conditions that may turn into concrete legal criticalities.

Contractual and commercial risks

  • Difficulties in meeting payment obligations;
  • activation of guarantees and contractual mechanisms;
  • need for renegotiations under unfavorable conditions.

Corporate risks

  • Assessment of decisions made in scenarios of financial deterioration;
  • exposure of financing structures;
  • analysis of the liability of directors and executives.

Available legal tools

The Chilean legal framework provides tools to address financial stress scenarios under Law No. 20.720.

Reorganization

This allows liabilities to be restructured and business continuity to be maintained within a protection regime that limits debt collection and enforcement actions.

Liquidation

A procedure aimed at the orderly realization of assets when business continuity is no longer sustainable, with immediate effects on administration and claims.

The use of these tools largely depends on when they are assessed and on the strategy adopted by the different operators.

Key elements for risk management

In this context, the ability to anticipate critical issues becomes crucial to mitigating potential contingencies:

  • timely review of contractual obligations and financial covenants;
  • assessment of exposure within corporate groups;
  • definition of out-of-court negotiation strategies;
  • active monitoring of counterparties’ financial situation.

Timely management can directly affect operational continuity and the protection of corporate assets.

Timely risk management

Current market conditions are shaping a scenario in which the deterioration of revenues is beginning to translate into pressure on the fulfillment of obligations and greater exposure to contractual and financial disputes.

In this context, an increase in the use of restructuring tools is foreseeable, both out of court and through the procedures provided for under Law No. 20.720, especially in cases where liquidity pressure persists over time.

The evolution of this process will depend on the ability of operators to anticipate and manage these risks in a timely manner.

The Chilean cherry industry is facing a rebalancing process that goes beyond the commercial dimension and is beginning to have effects on the financial and legal stability of the sector.

The way these scenarios are managed in the early stages will be decisive for business continuity and for risk mitigation along the supply chain.

Source: Carey

Image source: Stefano Lugli


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