The Chilean table grape season is underway, featuring the highly anticipated implementation of the Systems Approach for shipments to the United States, which also includes organic table grapes.
In an interview with FreshFruitPortal.com, Agrícola El Cerrito General Manager Gustavo Ricke shared insights on the current season, stating, "We are experiencing high production per acre this year, especially with the newer varieties, which are reaching their peak productivity of approximately 1,500 to 1,800 boxes per acre."
Agrícola El Cerrito is located in Paihuano, Elqui province, in the northern Coquimbo Region, and its entire production is dedicated to exporting table grapes.
"It is a great year in terms of production, but this does not translate into favorable prices in global markets, as we are facing significantly lower prices," Ricke noted. He explained that they are cushioning the impact of these low prices with increased productivity, but that this is often not enough to offset the losses.
He recalled that last year, with the same 180 acres, they produced 180,000 boxes, equivalent to 18.1 pounds each, "and this year we are on track to finish with a total production of 243,000 boxes of the same weight. This means we will have produced over 60,000 more boxes than last year."
Approximately 80% of Agrícola El Cerrito's table grape production is destined for the United States, targeting sales through specialized closed programs with supermarkets. The remaining 20% is distributed among various destination markets, including Europe, Central America, and the Far East.
"As Agrícola El Cerrito, we export about 10% of our volume under the Systems Approach," he stated. To facilitate this, they rented a nearby packing house. "Personally, I don't think this was the best year to implement it, as the costs are higher under the Systems Approach, yet the prices remain the same," he explained.
Based on observations from the broader Coquimbo Region, he estimated that no more than 25% of the shipped volume utilized the Systems Approach, while the remainder was treated via traditional fumigation methods.
"I'm not certain if this was the right year for it," he commented, "because we are not seeing sufficient compensation in market prices for the improvements in arrival conditions, particularly in the United States. Moreover, it is becoming increasingly expensive to execute the Systems Approach compared to traditional shipping methods."
Regarding the additional costs, he specified that, in their case, it amounts to an extra $0.30 per box compared to conventional shipments, which is quite significant.
Reflecting on last year, he noted it was atypical, as the global market saw a decrease of 40 million boxes due to low production levels in Peru, California, and Chile, resulting in consistently high prices throughout the season.
He suggested that FOB prices had ranged between $25 and $28 last year, while current prices are now in the range of $12 to $15.
Concerning fruit quality, Ricke emphasized that the goal is to maintain an uninterrupted cold chain to ensure the fruit arrives fresher and undamaged, avoiding browning or deterioration caused by breaks in temperature control or fumigation.
Another important aspect addressed by Ricke is the logistics chain. He explained, "Currently, the system is not streamlined enough to allow all our fruit to be shipped under the Systems Approach. There is only one inspection site in the region, necessitating that all samples be taken there, and the Agricultural and Livestock Service (SAG) inspectors are insufficient in number."
In a scenario where all growers had collaborated to send their entire volume under the Systems Approach, he predicted they would still face delays with trucks waiting for inspection, indicating the system is not fully operational.
He added that to export fruit under this system, more inspections are required. "As a result, SAG increased its fees, and cold storage facilities charged additional costs, which ultimately raised the expense of sending fruit under the Systems Approach without a corresponding increase in the final sales price."
From Ricke’s point of view, producing organic grapes in northern Chile is particularly challenging, primarily due to the threat of powdery mildew, a latent fungal disease.
He explained that in response to this challenge, the organic grape industry must perform three times the number of applications compared to conventional orchards. "This means you require three times the logistics to achieve the same result, leading to three times the fuel consumption and a greater carbon footprint."
Ricke noted that they began their organic farming journey three years ago. "After completing three transition seasons, we received certification for our organic production, allowing us to export 8,000 boxes."
He specified that the company is adopting a hybrid strategy that balances traditional and organic practices with regenerative agriculture.
The first edition of GrapeTech will be held on June 18 at the Casino Monticello Event Center. The event, organized by UvaNova and Yentzen Group, will be the most important technical event on table grapes in Chile and will bring together world experts to provide technical aspects that allow the growth of the industry, such as post-harvest issues, crop management, analysis of new varieties and nutrition, among others. More information at events@yentzengroup.com or visit www.grapetechconvention.com.
