Apple, Table Grape and Pear Semi Annual Report

An Expert's View about Pome Fruits (such as apples or pears) and Stone Fruits (such as peaches, cherries, etc.) in Chile

Posted on: 20 May 2012

Chile’s apples, table grapes and pear production and consequently exports are expected to fall compared to last year as a result of adverse weather conditions in most growing areas.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 5/14/2012 GAIN Report Number: CI1218 Chile Fresh Deciduous Fruit Semi-annual Apple, Table Grape and Pear Semi Annual Report Approved By: Rachel Bickford, Agricultural Attaché Prepared By: Luis Hennicke, Agricultural Specialist Report Highlights: Chile’s apples, table grapes and pear production and consequently exports are expected to fall compared to last year as a result of adverse weather conditions in most growing areas. Executive Summary: New estimates show that production of apples, table grapes and pears will fall in 2012, as weather has not been favorable in general terms for fruit production. Exports will also fall accordingly except for apple juice concentrate because of a strong demand which is reflected by a significant increase of international prices. Commodities: Apples, Fresh Production: Unstable weather conditions in some production areas during last winter and spring coupled with higher than normal temperatures during the summer, affected apple production negatively in both volume and quality. Although sufficient cold hours accumulated during the winter that had a positive effect on budding which would have assured a good production volume, the excess heat at the end of spring and summer affected the quality which together with a strong domestic demand for apples by the processing industry, reduced the volume of apples available for exports. As a result the total volume of exports is expected to be smaller than the previous year. Consumption: There are no official statistics on domestic fresh apple consumption. The figures shown in our PS&D table are estimated as a residual of production, minus apples destined for processing and known exports. Trade: Due to a smaller harvest the industry expects export volumes in 2012 to be lower than last season. Additionally, increasing production costs (labor and energy costs) and a strong Chilean peso and weak dollar, caused producers to prefer domestic sales to the processing industry as demand has been strong and prices have increased. High prices offered by the apple juice industry tempted a large number of producers to sell their production to a fixed known price instead of a delivery of their production in consignment to an undetermined price. Production, Supply and Demand Data Statistics: Apples, Fresh Chile 2009/2010 2010/2011 2011/2012 Market Year Begin: Jan 2010 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 37,300 37,300 37,300 37,300 0 37,300 Area Harvested 32,900 32,900 33,000 33,000 0 33,100 Bearing Trees 14,800 14,800 14,845 14,845 0 14,890 Non-Bearing Trees 2,011 2,011 1,966 1,966 0 1,921 Total Trees 16,811 16,811 16,811 16,811 0 16,811 Commercial Production 1,360,000 1,360,000 1,496,000 1,421,000 1,490,000 1,400,000 Non-Comm. Production 10,000 10,000 10,000 10,000 10,000 10,000 Production 1,370,000 1,370,000 1,506,000 1,431,000 1,500,000 1,410,000 Imports 245 245 400 820 500 500 Total Supply 1,370,245 1,370,245 1,506,400 1,431,820 1,500,500 1,410,500 Fresh Dom. Consumption 185,146 190,596 207,440 197,000 195,000 195,000 Exports 842,599 837,149 827,000 800,834 840,000 750,000 For Processing 342,500 342,500 471,960 433,986 465,500 465,500 Withdrawal From Market 0 0 0 Total Distribution 1,370,245 1,370,245 1,506,400 1,431,820 1,500,500 1,410,500 HA, 1000 TREES, MT Export Trade Matrix Country Chile Commodity Apples, Fresh Exports for: 2010 2011 Time Period Jan-Dec Units: M.T. Units: Volume Value Volume Value U.S. 121,083 99,549 U.S. 90,634 79,847 Others Others Colombia 76,614 53,877 Colombia 70,874 55,180 Saudi Arabia 58,979 41,825 Netherlands 60,414 46,059 Netherlands 56,856 38,220 Saudi Arabia 54,202 41,175 Taiwan 51,305 57,493 Russia 48,688 36,450 Ecuador 47,412 30,870 Taiwan 46,451 55,789 Peru 47,185 26,361 Ecuador 46,427 33,005 Russia 38,018 26,655 Peru 37,804 23,941 U.K. 35,885 28,051 India 29,194 18,594 U Arab Emirates 28,859 19,962 U.K. 29,142 25,674 India 23,035 15,055 Venezuela 26,512 26,817 Total for Others 464,147 449,708 Others not Listed 251,920 260,492 Grand Total 837,149 620,660 800,834 644,822 Commodities: Grapes, Table, Fresh Production: Due to unstable weather conditions last spring in the valley of Copiapo, higher than normal temperatures during the summer in the central region and a shortage of water availability for irrigation in almost all production areas, table grape production in 2011/2012 is expected to be slightly smaller than the previous season. Higher than normal temperatures during the summer months affected the quality of the table grapes in some production areas will result in a smaller export volume than both last year and our previous forecast. Chile produces over 36 varieties of table grapes for export. Thompson Seedless, Crimson Seedless, Red globe, Flame Seedless Superior Seedless and Autumn Royal account for the bulk of production, over 90 percent. Table Grapes are planted from the Atacama Region (Copiapo) to the Maule Region (Curico- Talca). Consumption: As with other Chilean fresh fruits, domestically consumed table grapes are mainly export rejects. There are no official statistics on domestic consumption. Domestic fresh consumption is derived from the only known figure, which is exports, and estimated production data. Domestic consumption and processing, generally accounts for about 30 percent of total output. Trade: Total table grape export volume is expected to be smaller in 2012 than the previous year as a result of a smaller harvest. During this export season, due to lower prices than usual (up to 30 percent lower) in the United States at the beginning of the export season (Dec 2011), a large number of export companies sent their fruit to Europe and other markets. But the trend reverted and when table grape prices recuperated in the U.S., increasing significantly to record levels for the season. Nevertheless exports to the U.S. market is expected to be 10 percent lower when compared to previous year and volumes exported to Europe will exceed by as much as 50 percent when compared to last year. But at the end total exports are expected to fall close to 3 percent when compared to the previous season. The US is by far the largest export market for Chilean table grapes, close to 50 percent goes to that market. The EU is the second export market. As in the past, table grapes are being imported during the off-season. Production, Supply and Demand Data Statistics: Grapes, Fresh Chile 2009/2010 2010/2011 2011/2012 Market Year Begin: Jan 2010 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 62,411 62,411 62,462 62,462 0 62,470 Area Harvested 53,085 53,085 53,118 53,118 0 53,125 Commercial Production 1,100,000 1,100,000 1,210,000 1,210,000 1,200,000 1,170,000 Non-Comm. Production 5,000 5,000 5,000 5,000 5,000 5,000 Production 1,105,000 1,105,000 1,215,000 1,215,000 1,205,000 1,175,000 Imports 282 282 250 177 250 250 Total Supply 1,105,282 1,105,282 1,215,250 1,215,177 1,205,250 1,175,250 Fresh Dom. Consumption 323,982 324,197 345,250 361,657 335,250 345,250 Exports 781,300 781,085 870,000 853,520 870,000 830,000 For Processing 0 0 0 Withdrawal From Market 0 0 0 Total Distribution 1,105,282 1,105,282 1,215,250 1,215,177 1,205,250 1,175,250 HA, MT Export Trade Matrix Country Chile Commodity Grapes Exports for: 2010 2011 Time Period Jan-Dec Units: Volume Value Volume Value U.S. 411,496 690,440 U.S. 402,060 642,610 Others Others Netherlands 68,123 99,750 Netherlands 85,008 138,080 U.K. 49,658 80,807 U.K. 50,792 101,113 Russia 41,387 60,995 Hong-Kong 39,785 73,675 So. Korea 31,103 62,022 So. Korea 39,404 78,736 Hong-Kong 25,191 48,088 Russia 35,917 52,548 México 18,588 32,400 China 23,832 48,590 Brazil 11,699 16,922 Mexico 19,578 32,276 Spain 11,499 16,351 Brazil 18,789 27,047 China 9,830 21,216 Canada 18,484 32,333 Canada 7,698 14,214 Spain 11,945 15,847 Total for Others 274,775 343,534 Others not Listed 94,814 107,926 Grand Total 781,085 1,288,505 853,520 1,419,387 Commodities: Pears Production: Weather conditions during the last winter months which allowed accumulating enough cold hours for a good budding, was expected to have a positive effect on total output of pears. But high temperatures at the end of spring and summer affected quality and volume of the production, as a result total output is expected to be smaller than last year. Consumption: Most pears are consumed fresh because only a few existing varieties in Chile can be processed for canned pears or juice concentrates. Domestically consumed pears are mainly export rejects. Trade: The estimated smaller production is expected to result in a corresponding fall in exports. The European Union is Chile’s main export market. Close to 50 percent of exports are destined for the EU. Production, Supply and Demand Data Statistics: Pears, Fresh Chile 2009/2010 2010/2011 2011/2012 Market Year Begin: Jan 2010 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 6,590 6,590 6,590 6,590 0 6,590 Area Harvested 6,000 6,000 6,000 6,000 0 6,000 Bearing Trees 2,981 2,981 2,981 2,981 0 2,981 Non-Bearing Trees 285 285 285 285 0 285 Total Trees 3,266 3,266 3,266 3,266 0 3,266 Commercial Production 260,000 260,000 288,000 288,000 285,000 285,000 Non-Comm. Production 2,000 2,000 2,000 2,000 2,000 2,000 Production 262,000 262,000 290,000 290,000 287,000 287,000 Imports 0 61 0 225 0 25 Total Supply 262,000 262,061 290,000 290,225 287,000 287,025 Fresh Dom. Consumption 81,427 82,000 83,000 85,000 82,000 87,000 Exports 116,773 116,261 137,000 133,551 140,000 130,000 For Processing 63,800 63,800 70,000 71,674 65,000 70,025 Withdrawal From Market 0 0 0 Total Distribution 262,000 262,061 290,000 290,225 287,000 287,025 HA, 1000 TREES, MT Export Trade Matrix Country Chile Commodity Pears, Fresh Exports for: 2009 2010 Time Period Jan-Dec Units: Volume Value Volume Value U.S. 18,187 15,156 U.S. 18,187 15,156 Others Others Netherlands 26,739 21,845 Netherlands 16,990 16,221 Italy 14,605 16,763 Colombia 16,555 13,402 Colombia 13,514 10,074 Italy 13,039 15,268 Peru 9,790 5,934 Peru 11,295 7,665 Venezuela 8,460 13,133 Ecuador 8,931 6,527 Ecuador 6,730 4,445 Germany 4,774 4,505 Germany 5,179 4,252 Russia 4,520 4,159 Spain 5,032 4,810 Spain 4,334 4,428 Russia 3,728 2,963 Venezuela 2,560 2,849 UA Emirates 2,275 2,181 Saudi Arabia 2,546 2,426 Total for Others 96,053 85,544 Others not Listed 15,330 12,550 Grand Total 129,570 113,012 116,281 106,071 Commodities: Apple Juice, Concentrated Production: Chile’s production of apple juice concentrate (AJC) primarily reflects foreign demand and apple for processing availability. The apple juice industry mainly processes export rejects, but the industry has also encouraged farmers to plant sour-type apples, as well as to expand new plantings of apple varieties mainly for juice purposes. The apple juice industry competes with the pulp industry for the apples left from the fresh exported process. A strong demand for apple juice has increased prices paid by the industry to farmers who have decided to favor sales to the AJC industry instead of fresh apple exports. As a result, a large number of producers decided to sell their production to a fixed known price instead of delivering their production in consignment to an undetermined price. As a result total output of AJC is expected to increase during 2012. Consumption: Only a small amount of AJC, principally single-strength juice, is consumed domestically. AJC competes with a variety of fresh and processed juices in Chile. Trade: The United States continues to be Chile's largest AJC export market, accounting for over 60 percent of total export sales in 2011. Other markets of increasing importance are South Korea, Mexico and Canada. Latin American export markets also are growing. Levels of AJC exports will depend upon foreign demand and the ability of the industry to compete in international markets against other suppliers such as China. During 2012 exports of AJC are expected to increase as a result of a production expansion. Production, Supply and Demand Data Statistics: Export Trade Matrix Country Chile Commodity Apple Juice, Concentrated Exports for: 2010 2011 Time Period Jan-Dec Units: M.T. Units: Volume Value Volume Value U.S. 18,599 18,511 U.S. 22,676 39,731 Others Others Canada 5,405 5,872 Canada 10,553 20,248 Japan 3,834 4,076 Japan 4,837 7,950 México 3,809 4,117 México 4,696 8,765 Netherlands 1,689 1,958 Germany 4,289 8,476 Germany 1,264 1,427 UK 2,558 5,169 South Korea 1,056 1,302 South Korea 2,288 4,598 UK 480 558 Netherlands 1,112 2,281 Argentina 458 484 Poland 533 1,008 El Salvador 294 322 Spain 442 887 Peru 184 257 Argentina 438 700 Total for Others 18,472 31,746 Others not Listed 662 917 Grand Total 37,732 39,847 55,339 101,656
Posted: 20 May 2012

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