Chilean walnut sector looks to US research to improve profitability
Chilean walnut season encountered climatic challenges last year, with a delayed harvest severely impacting volumes. Industry expert José Pablo Correa spoke to FreshFruitPortal.com and analyzed this productive decrease, as well as the alternatives to improve profitability for the sector.
He described last season as "not so good because we had bad accumulations of cold hours and very bad temperatures during sprouting, which had a strong impact on production per hectare, resulting in poor fruit set."
Correa added that this combination of factors led to a 20-30% drop in production across different areas, clearly reflecting the poor weather conditions experienced.
However, he indicated that the current conditions are better than last year’s. He explained that there has been improved temperature during the winter in terms of cold hour accumulation, and the spring weather so far has been good, despite being slightly rainier. Correa noted that they have not faced major frost damage issues.
Based on these improved conditions, Correa expects the orchards to reach normal production levels of 7,000-8,000 kilos per hectare, which is sustainable over the years for a well-managed walnut orchard.
Discussing the current crop status, Correa stated that the orchards in the Metropolitan and northern areas are in the sprouting and fertilization stages. For orchards from O'Higgins southward, he noted they are prior to the fertilization stage, with elongated buds and visible green tissue.
Correa projected that the first harvests with the Serr variety will begin in March, starting in the Metropolitan area and moving northward.
Despite the positive outlook, Correa acknowledged the sector faces ongoing challenges. The key is maintaining orchards at productive levels above 7,000 kilos per hectare, with good size distribution, fruit color, and filling.
Growers must also manage costs effectively, as the average production needs to be balanced against costs to achieve a profitable business, typically in the range of $3,000-$4,000 in profit per hectare.
Correa also highlighted the importance of the Indian market, which has been positioning Chilean walnuts as a higher quality standard compared to American walnuts. Exporters have indicated that this season's returns per kilo are expected to be better than the previous year, providing improved profits for farmers.
Looking to the future, Correa recalled that walnut was once the "queen of the ball" in the industry, raking in an average of $4.50-$5.00 per kilo. However, he acknowledged that the business has become more extensive, requiring careful management of expenses to ensure profitability.
Correa emphasized the need for the industry to introduce new, more productive walnut varieties with better characteristics, as seen in the research developed by UC Davis in California. He believes this is crucial for securing the industry's future profitability.
“Today, as an industry, we have to bring these varieties, get to know them, manage them and evaluate these alternatives in order to give the industry a second wind,” he said.
In conclusion, Correa stressed the importance of the industry working together, and supporting each other to achieve better development and growth in the short term for the walnut sector.
*Photographs courtesy of José Pablo Correa.