Chile's walnuts crack foreign markets
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Turkey, Brazil and Italy were the main export destinations for Chilean walnuts during the 2013-2014 season, which ended with a 16% increase in exports totaling 42,390 metric tons (MT) between April 2013 and March 2014.
According to information provided by the Chilean Walnut Commission, exports to Turkey grew by 29% year-on-year to 8,032MT.
Commission president Andrés Rodríguez told www.freshfruitportal.com the increase in exports to the Turkish market represented a recovery of shipments to normal volumes.
"2012 was a year of low exports to Turkey (5,796MT), mainly because the season started with high U.S. stock, and some market problems, both in the domestic Turkish market and in re-export destinations in the Middle East," he said.
"With this increase of 39%, Chile has returned to its normal volume of exports to Turkey, which is a good indicator that Turkish market and re-export destinations in the Middle East and Europe are back in swing.
"Chile’s exports to Turkey mainly consist of walnuts in shells, which are sent to Turkey and are then partly distributed in the domestic market, while around 50% are re-exported."
With regards to Italy, exports to the country reached 5,971MT, a 50% increase from the previous season. Much of this was due to a general increase in activity of European markets.
"Italy is the main destination for Chilean walnuts in the European Union, followed by Germany and Spain. Shipments of in-shell walnuts to Italy grew 36% to 2,595MT and shelled walnuts grew by 62% to reach 1,688MT," Rodríguez said.
By contrast, the Brazilian market was down 25% to 6,039MT, mainly because there were other markets that reactivated during late 2013, impacting shipments usually destined for Brazil.
"The Brazilian market is mainly shelled walnuts, and 84% of exports from Chile fall under that category," Rodríguez said.
Meanwhile, the Middle East has become an important market for Chilean walnut exporters, as demonstrated by figures from the recently finished season.
In the UAE, for example, the demand for in-shell walnuts grew to 1,074MT, a 91% increase from last season.
"The increase in shipments to this market is mainly due to the recovery of re-export markets in the Middle East, especially Iran, following the highest standards of market entry and social and political stability," Rodríguez said.
"We performed various marketing efforts in the Middle East, primarily through food fairs and seminars. The increase in exports to this region is the result of several years of development."
In Asia, exports to South Korea were down 7% to a total export volume of 2,598MT. However, Rodríguez said this was still a good figure given the recent adverse market conditions.
"When Chile was entering the South Korean market this season there was already a lot of U.S. stock, far more than we would have expected, so we only recently began exporting in the second half of the season," he said.
"Chile is already starting to become known as a reliable supplier and is gaining ground in the South Korean market. In fact, we are conducting significant marketing campaigns to push our walnuts into this market under the industry brand of ‘Walnuts from Chile’.
"Regarding China, we recently opened up the market for shipments of shelled walnuts, after two years of intense work with the government.
"The 2014 season will see our first direct shipments of this product to China. We are also working hard to open the Chinese in-shell market, which is a top priority for our industry.
"Today, we only send in-shell walnuts to Hong Kong, which receives 1,800MT from us annually."
Chile has also been working hard with the Indian government to gain authorization of Chilean walnuts into that market.
"During 2013, we spoke with the Minister of Agriculture where we gave walnuts priority status on the list of products to be traded with this important market. We are expecting the market to open up for us soon, so we hope that in 2014 we can have our first shipments," Rodríguez said.
2014-2015 Season
It is expected that in the 2014/2015 season Chile will maintain the previous total volume of 42,500MT.
The Chilean Walnut Commission originally reported an expected growth increase of about 15%, but this was later retracted due to frost in Chile which mainly affected the Serr variety. However, the walnuts are said to be of excellent quality and size with good color.
Chile is the third largest exporter of walnuts in the world. Currently, the country sends walnuts to over 40 countries and the total export volume is expected to double within the next five years, according to Rodríguez.
Photo: Chilean Walnut Commission