Ruy Barbosa, president of the Blueberry Committee: "Chile is much more than cherries"
"Currently, the Chilean blueberry industry is performing according to expectations, with a slight 8% increase to date compared to last year and an 8% decrease compared to the 2022-2023 season," says Ruy Barbosa, president of the Chilean Blueberry Committee.
He added that the fruit sent so far has been within expectations from a quality standpoint. There has been a notable increase in Group 1 varieties, primarily new varieties with all the conditions to compete in any market. Group 2, he explained, consists of varieties that require some consideration, care, and certain restrictions.
"These varieties are still capable of competing if handled properly, unlike Group 3, which consists of varieties we do not recommend for export, as they cannot reach their destination in optimal condition."
Given the evolution of the Chilean blueberry industry, Barbosa added that they have seen "a greater emphasis on Group 1 varieties, which is good, and a significant decrease in Group 3, which is very good."
He detailed that Group 1 includes new genetics, "such as the new varieties from Hortifrut and Fall Creek, where the Sekoya group stands out, which shows that the replacement of varieties is becoming a reality in Chile."
According to the president of the Chilean Blueberry Committee, variety replacement is still insufficient. He says the industry must "increase and speed up this replacement, which is not easy because it’s expensive, not simple, and takes time. But there’s a noticeable trend where exporters and producers are beginning to understand that variety replacement is necessary to compete in the future."
Regarding the traditional varieties classified within Groups 1 and 2, he indicated that they can still compete, "but we need to be cautious and do it right."
He added that by week 3, most of the fruit shipped before Christmas had been sold. However, at this point, fruit harvested during the holiday season, which had fewer effective working days, is beginning to arrive.
This affected the ideal harvest times and coincided with extremely high temperatures. Additionally, container availability, Controlled Atmosphere (CA) storage issues, and delays in ship departures started to cause problems. As a result, "this will be fruit that could be more delicate and will need to be moved with greater speed and care."
Logistics: One of the worst seasons for the industry
When asked about the difficulties faced during this campaign, he was clear and direct in saying, "We had tremendous logistical problems. In my experience, this is one of the worst seasons we've experienced in logistics in Chile after the one we had during the pandemic."
From Barbosa's perspective, "the entire Chilean industry focused on cherries."
"It seems to me that shipping companies prioritized cherries, leaving blueberries in second place, which affected our ability to compete on equal terms; transporters, customs agents, and the Agricultural and Livestock Service (SAG) were overwhelmed by the huge volume of cherries that Chile had this season," said Barbosa.
In this regard, he was critical, saying, "Chile is much more than just cherries. I don’t ignore the importance of this fruit, and, remarkably, today, cherries account for almost 50% of all fruit exports from Chile, but we can’t just focus on one fruit, especially on almost one market. A concentration like the one cherries have today, in my personal opinion, is incredibly risky for the entire industry."
Barbosa argued that the logistical crisis was evident for blueberries.
"Two major shipping companies intermittently shipped to the United States between weeks 52 and 4. Initially, the excuse was a strike that was supposedly going to take place, but the truth was that they didn’t have enough containers or CA storage. Additionally, there have been issues with transshipment in Panama, which has caused uncertainty and delays in the arrival times of shipments."
He added that from a logistical standpoint, this season has been a real problem that has affected Chile's blueberry industry competitiveness. "I believe we need to review our export process. I get the impression that it’s cumbersome, slow, and expensive. We need to be more competitive and agile in shipping our products. Our competitors are preparing better than we are. A clear example of that is the Chancay port in Peru. And we need shipping companies to offer better service because, in the end, the country's image is affected when we make excuses for why our fruit doesn’t arrive when our customers need it."
Prices
The challenges have not only been logistical. Barbosa pointed out that the market is becoming very complex regarding prices, saying, "Right now, the prices for Chilean blueberries are really bad."
He explained that this situation is mainly due to a higher supply from Peru, which has also overlapped more than in previous seasons with Chilean blueberries. Pruning delays caused this due to the El Niño phenomenon last year. "This year, they had a larger and later production that overlapped much more with the Chilean window."
He analyzed, saying, "Chile is currently facing a complex situation because there is a greater supply of blueberries, which becomes even more difficult if we fail on the logistical front."
Chile
It is essential to examine the work being done in Chile concerning two relevant factors—logistics and prices. In that sense, the leader of the Chilean Blueberry Committee stated, "Local producers are making an effort to compete against the larger supply and higher quality of Peruvian blueberries."
He added that all their efforts are hindered when faced with logistical problems. "We don’t have an adequate service to move our fruit and get it to market in good condition."
He called for an industry-wide review "because our sector is called Frutas de Chile (Fruits of Chile), it’s not called Cerezas de Chile (Cherries of Chile), and we all contribute to Frutas de Chile."
Markets
Ruy Barbosa’s analysis also included the destination markets for Chilean blueberries. He categorically stated, "This year, a different phenomenon has occurred, where the largest volume has been sent to Europe, not the United States."
He explained that by week 3, the Netherlands accounted for 40% and the United Kingdom for 7%. "For the first time, the United States is in second place with 37%, largely due to logistical problems."
"With no alternatives to ship to the United States, many exporters were forced to send their blueberries to Europe." Barbosa added, "This will have consequences because much of that fruit didn’t have a clear program, and some lots likely didn’t have the conditions for a longer journey, such as to Europe. Prices are depressed right now, and returns will be low."
Competition with Peru
The Chilean blueberry industry has been seeking profitability, and Barbosa said, "It’s not easy to face the law of supply and demand. We can’t control what Peru does."
The volume from Peru undoubtedly impacts the other blueberry-producing countries, affecting the Chilean industry. In this regard, he said, "My opinion is that Peru, with its volume and projections, needs to make an additional effort in terms of promotions."
He said, "When you're a leader, you have responsibilities. When Chile was the world’s top blueberry exporter, the committee, with the support of Frutas de Chile, made significant promotional efforts in the major markets around the world to introduce blueberries, which were unknown to many people, and thus increased consumption. So, today, as Peru is the largest exporter of blueberries, it must assume this responsibility, take the lead, and start investing heavily in promotion."
He explained that blueberry consumption is rising globally. Still, when the production curve increases, as in Peru, additional promotion and marketing efforts are necessary to move that larger volume with minimal impact on price.
"If serious promotional efforts are not made, the excess supply will continue to push prices downward, affecting the profitability of all producers."
Organic Chilean Blueberries
He said Chilean organic blueberries are highly sought after in markets, especially in the United States, but they have a fairly limited space. "Requiring a high level of specialization from certain supermarket chains, which means there are boundaries to consider when deciding to pursue this type of production."
If you look specifically at the price from week 3 onward, it will be very good until the end of the season. However, during the peak season in Peru (November-December), the price of organic blueberries was nearly the same as that of conventional ones.
He added that "organic blueberries have higher production costs, and not everyone can achieve optimal production levels. So, it’s important to understand that while they have a niche market that highlights them, this space doesn’t grow as quickly as we would like."
China
Analyzing the Chinese market, the president of the Chilean Blueberry Committee noted that for the Chinese importer, "Cherries are their main business, and they go crazy for cherries. However, with blueberries, they have year-round continuity."
In this regard, he explained that with the development of local blueberry production, it is likely that in the medium term they will have production all year round. He pointed out that "their production is concentrated between March and August, but due to the diversity of climates and the high technological advancement of their crops, they are also capable of producing during other months."
He added that local supply is mainly complemented by Peruvian, Australian, and Chilean blueberries, which has resulted in a permanent presence of blueberries in wholesale markets and major supermarkets in China. "This allows them to have constant movement, contributing to the profitability of their business because they have the product all year round," said Barbosa.
The president of the Chilean Blueberry Committee views China’s growing role in the blueberry industry positively. "The fact that the Chinese are producing blueberries means that their enormous population will also get to know the product better and we’ll have higher consumption, which will benefit all of us."
"I am convinced that blueberries will become the most consumed fruit globally because they combine great adaptability to different regions and climates, have superior ease of consumption, and offer unmatched nutritional benefits."
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