With a group of 14 blueberry farmers in southern Chile, trader Bluewave claims its direct bulk sales model has increased grower returns. At www.freshfruitportal.com we catch up with commercial director Juan Pablo Hube, who discusses how the model works through a philosophy of independence.

For the 2011-12 season the company shipped 1,058 metric tons (MT) of the fruit to its receiver Dutch company ASF Holland, which has become the third-largest buyer of the berry in Europe behind Berry World and Euroberry Marketing.

This season the company also sealed a deal with California-based Giumarra in the U.S., which received around 1,000MT of blueberries through the arrangement.

Hube emphasizes the fact his company is not an exporter but a consultant and trader that represents farmers, with properties from Rancagua through to Osorno.

"They are the ones who figure in the documentation and everything goes in their names. The settlements all go in their names."

With this comes a certain responsiblity for each grower, which can be to their benefit or detriment depending on fruit quality. Hube says growers generally get between US$0.50-1 more per kilogram (2.2lbs) under the arrangement.

"The fruit isn't mixed with the neighbor's and every grower is paid seperately, and that's why if the fruit is good there could be better returns, but if it is regular they could make the same as they would through an exporter, or if it's bad even less," he adds.

He highlights the model's strong traceability suit as blueberries travel independently with identification. Some growers have even set up their own cold storage facilities as an investment to improve their own fruit quality.

Hubo does not plan to increase the group of growers much, insteaad looking for better relations amongst the farmers.

"We are looking more for a friend than a partner and we are focused more on quality than quantity. Now, the growers can grow in the same way that the volume is growing."

Quality control and incentives

Bluewave conducts periodic quality checks, but Hube says with some growers this still hasn't been the case because "they are sufficiently mature to understand and can fix their problems".

When asked whether growers with sufficient experienced might split from the group to go direct, Hube says they tend to respect the alliance Bluewave has with receivers, but there have been exceptions.

"It has happened to me that some growers in their second year have wanted to go solo and have contacted the receivers, but it's then that the receiver advises us to solve the problem, and know if it's to do with the grower and what relationship we are looking for.

He says growers have joined the group because they are tired of the traditional export model.

"Many are willing to take the risk of trying another model, although there are other growers that don't want to change. In the industry there is roo for everyone: big and medium exporters, and other business models."

Through ASF Holland the blueberries are traded mainly Scandanavia, the Netherlands, England and Germany.

"The focus is to keep growing as ASF Holland joined with Total Produce and that opens all of Europe to us."

Related story: Bulk blueberry shipping a future alternative for Chile

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