Chile's grape industry has lost a sizable 30% of its competitiveness over the last decade due to old vines, high costs and scarce labor, according to the country's Fruit Producers Federation (Fedefruta), but new efforts could soon turn the situation around. 

Table grapes, along with apples, are Chile's biggest export crop, but increases in input, energy and labor costs of up to 90% have taken their toll on growers' productivity and profitability.

Around 53,000 hectares between the country's Atacama and Maule regions are said to be made up of old vines which simply can no longer produce the quality and yield needed to remain competitive at an international level.

Issues of drought, labor shortages, and unfavorable currency exchange rates have also exacerbated the situation over time.

Renowned table grape consultant Carolina Cruz explained the rate of growth for Chile's exports had been shrinking dramatically since the late 1990s and was virtually at a halt.

"The consequences become apparent when you analyze exports for this crop over the last 15 years," Cruz said.

"Between 1998 and 2003 the table grape export volume grew by 44%, but from 2003 to 2008 the increase was only 18%, and then from 2008 onwards it's grown a mere 2%, and that includes the decline in the 2013-2014 season due to the frosts."

So what can be done?

"Much of the grape production area in Chile is obsolete or on the path to becoming so because of the age of the grapevines, and as a result growers' profit per hectare has been in sharp decline," Cruz said.

"As such, urgent structural changes are required if this industry is to have any hope of retaining its leadership."

Cruz is one of many technical advisors who have come together from all over the country to form the Chilean Table Grape Research and Development Commission (Uvanova), whose main aim is to 'promote re-engineering' of Chile's table grape production and boost its competitiveness.

In order for the South American nation to retain its position as one of the world's most prominent exporters, Cruz said the commission planed to support the industry by helping with a range of critical aspects.

"[Uvanova will look into] defining productive strategies to reduce labor costs, increasing the varietal and rootstock gene pool, identifying technologies and postharvest processes, and ensuring sustainability and safety in the field," she said.

"Producers of all grape varieties will play a hugely important role in establishing the guidelines to address problems in every region in the country."

Uvanova director Martin Silva said the organization was first created from a need to revamp the practices of the whole Chilean table grape industry in order to produce better and more profitable crops.

"The idea for Uvanova came about roughly six years ago because of our concern that table grape research was not focused on addressing problems like profitability per hectare, which has plummeted," Silva explained.

"The effects of exchange rates continue to plague us, along with the cost, availability and quality of labor.

"The resources invested in this fruit industry are brutal. We need to change the way we grow the fruit, and therefore we need focused research to lead a re-engineering of table grapes that will allow growers to rekindle their love with cultivation."

Fedefruta in support

Uvanova was launched last Thursday (August 21) during a Fedefruta regional meeting in the central area of Los Andes, one of the country's key growing regions.

Fedefruta president Juan Carolus Brown Bauzá, who is a table grape exporter and producer himself, said he agreed bold changes were needed within the industry.

"We look on with much anticipation for what will become of this initiative that goes hand in hand with the proposals we had passed on to the authorities with respect to accessing funds to regenerate the vineyards and maintain phytosanitary protection, including proposals to increase the competitiveness of this sector," he said.

Photo: www.shutterstock.com

www.freshfruitportal.com