The Chilean cherry season has officially entered the final stretch of its 2024-25 campaign. According to a report by intelligence firm Decofrut, 626,013 tons have been exported as of Week 9. This marks a 51% increase compared to last season, which saw exports of 413,979 tons.

The report indicated that of the total shipments, 3% were exported by air, 1% by land, and 95% by sea. 

Regarding destination markets, Chilean cherries were primarily shipped to the Far East, totaling 587,800 tons, which accounts for 93.9% of exports and reflects a 51% increase in market share. In second place was North America, importing 21,300 tons with a 3.4% share, reflecting a 46% increase from the previous season. Latin America received 9,500 tons, holding a 1.5% share and experiencing a 31% rise. Finally, Europe imported 6,900 tons, accounting for 1.1% of the total, with an increase of 81%.

The Middle East follows with 329 tons, representing a 0.1% share and a remarkable 202% growth.

China remained the top importer, receiving 91% of shipments. The United States was in second place with 3.2%, followed by South Korea with 1.09%, Taiwan with 0.9%, Brazil with 0.7%, and both England and Vietnam with 0.5% each.

Analysis of the season

After reviewing the overall season, FreshFruitPortal.com spoke with Javier Saavedra, commercial manager at QIMA Produce, who noted that the campaign began with relatively normal prices compared to the 2023-24 season. He explained that factors such as volume, fruit condition, and certain quality issues led to a decline in prices. This trend persisted throughout the season and significantly impacted the market.

“Although attempts were made to diversify markets, these efforts were insufficient to boost prices,” he added. The sector had hoped for a price increase before the Chinese New Year, but “that never happened,” he stated.

After the Chinese New Year, Saavedra noted an intriguing influx of fruit, with prices ranging from $9.68 to $12.44 - levels that do not even cover production costs. He emphasized that an efficient producer requires a minimum price of around $20.74 to break even.

Saavedra attributed the price drop to the high volume and decreased quality of the fruit, which arrived at lower levels than the previous year, combined with low expectations for the Chinese market. “There wasn't the usual excitement around Chilean cherry season in China this year. In past years, there have been brief periods of frenzy, irrespective of volume or price. This year, that enthusiasm was noticeably absent,” he explained.

He observed that there were no crowded aisles of buyers eager to purchase the fruit. From his perspective, this lack of urgency resulted from increased competition in the market, meaning more supply led to less desperation for the fruit. Additionally, he noted a decline in the purchasing power of the Chinese population.

Saavedra also mentioned that shipments continue to arrive in markets, particularly in South Korea and to some extent in China, with exports also being sent to Thailand, indicating that the season still has some time left.

“This season marks a turning point: the industry must focus on efficiency,” he stated. Saavedra stressed that producers must work on managing production costs. “The industry will need to evolve, like other commodities, into a more cost-efficient model,” he remarked.

Marketing strategies

Regarding marketing strategies in China, Saavedra highlighted the positive impact of interventions by the Chilean fruit guild Frutas de Chile and other stakeholders. However, he noted that the industry's overemphasis on the anticipated high volume of cherries could have worked against them, creating an expectation for a large supply that ultimately was not met.

He also discussed the issues faced by the Maersk Saltoro ship, which carried over 1,300 containers of cherries that did not arrive in China on time, resulting in the destruction of the fruit. Saavedra called this delay “the icing on the cake of the season.” 

“The biggest risk, aside from the losses incurred by individual growers, is the significant damage to the image of the Chilean cherry season in China. Some consumers believed that the fruit from the delayed shipment had entered the market, which was not the case,” he concluded.