While Chilean cherry exporters have found a strong market in China, the future of the industry may depend on an even more demanding destination: the United States.

China today represents an attractive market for Chilean cherries, with major holidays such as Chinese New Year falling during Chile’s peak production. As Chilean orchards expand, however, exporter David del Curto anticipated the Chinese market could become saturated.

“If Chile continues planting, it’s going to produce more than 30 million boxes. Last year, we exported 20 million. It’s going to increase quite a bit and it could duplicate our volume” said commercial manager Rodrigo Durán.

“Once Chile has that volume, it is going to have to supply the North American market more aggressively and it is going to have to be high, very high quality - at least as high or better than what goes to China.”

He estimated around 80 percent of Chilean cherries go to China currently. This market has proven fruitful for Chile, despite the greater distance than North American or European buyers.

U.S. shoppers have grown accustomed to high-quality, low-cost cherries, Durán explained, in large part due to the success of the Washington State industry.

“It’s always been a natural market for Chile and it’s the off season. But in general, people are very cautious about sending high volume and are very careful about quality because the North American consumer is very demanding. They don’t want to pay a high price,” Durán said.

While Chile’s counter-seasonal offer comes with its benefits, it can also be a barrier for Americans who associate cherries with summer months. Chile’s cherry season runs from November through late January.

The cold tends to diminish cherry demand, Durán said. Warmer, southern regions of the country, however, may offer greater potential.

Even for marketers on their home turf, cherries can be a difficult sell. Chelan Fresh Marketing Director Mac Riggan said promoting Washington State cherries comes with its own challenges.

Shoppers may find the fruit too expensive early in the summer, Riggan said. By late summer, the opportunity to buy may have already passed.

“It’s only been the last 10 years that our industry has really promoted them after the 4th of July. For a long time, four weeks was all the time they were available in the store. When you only have something for four weeks, by the time people find out about them, they’re gone,” he said.

Supply limitations have incentivized the industry to diversify orchards and push the limits of the season.

Cold winter and spring weather has delayed this season for Washington, pushing the start of harvest back to June 15. The long-term goal, however, is to maximize cherry production in June, July and August.

This season, Chelan Fresh will test alternative packaging in an effort to get more shoppers over to the category. One option this summer will be a smaller 1-lb. alternative to the standard 2-lb. clam.

“Our thought is that with that 1-lb. clam, we can introduce new customers to the cherry category because it will a lower price point that the 2-lb. pack and we’ll put a slightly bigger cherry in there,” Riggan said.

“So a 1-lb. clam is both an introductory package and it solves the need of providing someone a smaller bag of cherries.”

With only about 25% of the U.S. population regularly buying cherries, Riggan emphasized the importance of promoting quality through strong cold chain and packaging technology.

“We’re doing everything we can because cherries are a tough product to deliver. We’re doing everything we can to make sure we get them to the customer in the best possible shape,” Riggan said.

While the stakes may be high on the U.S. market, both Riggan and Durán see potential to grow and reach greater numbers of shoppers.

For Chile, learning how to overcome these barriers could be the key to sustainability.

“Chile has to start looking at the North American market with different eyes,” Durán said.

“China is the main market but it’s not very healthy to depend on just one market.”

www.freshfruitportal.com