Fresh Apples, Table Grapes and Pears Annual

An Expert's View about Agriculture and Animal Husbandry in Chile

Posted on: 22 Nov 2011

As a result of good weather conditions in all fresh fruit production areas, apple, table grape and pear harvest expanded during this past season (MY2010) when compared with the previous season (MY2011).

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: 10/27/2011 GAIN Report Number: CI1041 Chile Fresh Deciduous Fruit Annual Fresh Apples, Table Grapes and Pears Annual Approved By: Rachel Bickford, Agricultural Attach? Prepared By: Luis Hennicke, Agricultural Specialist Report Highlights: The industry forecasts that production of table grapes, apple and pears for the coming season will be similar to last year?s production, as the winter weather has been favorable. Executive Summary: As a result of good weather conditions in all fresh fruit production areas, apple, table grape and pear harvest expanded during this past season (MY2010) when compared with the previous season (MY2011). For the coming year, although it is too early in the season for an accurate forecast, a similar volume of production for apples, table grapes and pears are expected provided conditions remain stable. Commodities: Apples, Fresh Production: Total output in CY2011 resulted larger than previously estimated despite adverse weather conditions during the spring of CY2010. For CY2012, although it is still early to predict production volume, Chile's apple harvest is forecasted to be similar to the past year?s harvest, as weather conditions during this last winter months (Jun-Aug. 2011) have been favorable with frost only in some growing areas and not during the flowering time. Additionally sufficient cold hours have a positive effect on budding, which assures a good production. Producers have been diversifying their orchards, during the last decade, by planting new and more productive varieties, i.e., Fuji, Gala, Jonathan, Braeburn, Pink Lady and Galaxies in replacement for the traditional varieties, such as Red Delicious and its variations (i.e., Richard Red, Starking, etc) and increasing orchard density, output in the coming years is expected to keep expanding. Red apple varieties constitute over 75 percent of total planting and output. The main green variety is Granny Smith, which is used both for fresh export (mainly to Europe and the United States) as well as for concentrated apple juice production. Crop Area Although some growers, mainly in Regions VII (Curico-Talca) and VIII (Chillan), continue to replace and increase their planting densities, many farmers have been uprooting old orchards. In general, the total planted area is static due to a significant decrease in economic returns observed during the last few years. A strong peso together with increased labor costs has also been a factor by reducing competitiveness of the labor-intensive fruit industry in Chile. All these factors have brought the planted area into a holding pattern after a decade of continuous growth. The exchange rate for the peso fell again during the last 12 months from 494 Chilean pesos to 484 pesos to the dollar. Other factors, like increasing energy costs are also affecting the industry. Consequently, industry sources have indicated that increases of new plantings and significant production increases in the coming years are not expected. Consumption: There are no official statistics on domestic fresh apple consumption. The figures shown in the PS&D table are estimated as a residual of production, minus an estimate of apples destined for processing and the known export figure. Trade: A strong export demand for apples resulted in an increase of volume exported in CY2011 when compared to both, the previous year and our last estimates. Economic returns increased also during CY2011 as prices obtained for the exported apples increased slightly when compared to the previous year as was indicated by an industry source. Exports increased 23 percent in volume and 4 percent in value during 2011 when compared with the same period of 2010. 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 37,300 Area Harvested 32,900 32,900 33,000 33,000 33,100 Bearing Trees 14,800 14,800 14,845 14,845 14,890 Non-Bearing Trees 2,011 2,011 1,966 1,966 1,921 Total Trees 16,811 16,811 16,811 16,811 16,811 Commercial Production 1,360,000 1,360,000 1,496,000 1,496,000 1,490,000 Non-Comm. Production 10,000 10,000 10,000 10,000 10,000 Production 1,370,000 1,370,000 1,506,000 1,506,000 1,500,000 Imports 245 245 250 250 250 Total Supply 1,370,245 1,370,245 1,506,250 1,506,250 1,500,250 Fresh Dom. Consumption 185,146 190,596 194,290 195,000 195,000 Exports 842,599 837,149 840,000 846,000 840,000 For Processing 342,500 342,500 471,960 465,250 465,250 Withdrawal From Market 0 0 0 Total Distribution 1,370,245 1,370,245 1,506,250 1,506,250 1,500,250 HA, 1000 TREES, MT Export Trade Matrix Country Chile Commodity Apples, Fresh Exports for: 2009 2010 Time Period Jan-Dec Units: M.T. Units: Volume Value Volume Value U.S. 88,057 65,608 U.S. 121,083 100,139 Others Others Netherlands 64,950 37,834 Colombia 76,614 53,956 Colombia 59,293 39,040 Saudi Arabia 58,979 41,810 Peru 38,899 19,198 Netherlands 56,856 38,966 Ecuador 38,864 21,877 Taiwan 51,305 56,435 Saudi Arabia 36,068 25,214 Ecuador 47,412 30,868 Taiwan 31,953 35,371 Peru 47,185 26,361 UK 30,696 22,551 Russia 38,018 26,629 Russia 30,446 20,672 UK 35,885 28,751 Venezuela 27,520 41,132 U Arab Emirates 28,859 19,959 U Arab Emirates 25,458 16,870 India 23,035 15,055 Total for Others 384,147 464,147 Others not Listed 206,296 251,920 Grand Total 678,500 486,589 837,149 624,931 Time Period Jan-Sep Exports for: 2010 2011 U.S. 121,083 100,139 U.S. 90,634 61,288 Others Others Colombia 58,850 53,956 Colombia 64,233 48,535 Saudi Arabia 58,531 41,810 Netherlands 60,414 43,576 Netherlands 56,856 38,966 Saudi Arabia 53,962 40,766 Taiwan 51,305 56,435 Russia 48,688 35,364 Ecuador 40,554 30,868 Taiwan 46,451 54,292 Russia 37,958 26,361 Ecuador 41,553 28,503 U.K. 35,883 26,629 Peru 33,560 20,517 Peru 35,484 28,751 U.K. 29,142 21,814 United Arab E. 28,769 19,959 India 29,095 17,900 India 22,912 15,055 United Arab E. 26,406 18,707 427,102 433,503 217,647 249,920 765,832 576,991 774,056 575,741 Note: Volume in M.T. and Value in Thous.US$ F.O.B. Commodities: Grapes, Table, Fresh Production: Although weather has been colder than usual with snow fall in Atacama Region (Copiapo) which affected some table grape plantings, grape production is expected to be similar to last season. Sufficient cold hours accumulated during last winter (Jun-Aug 2011) will assure a good production and harvest in the coming season (MY2012). Chile produces over 36 varieties of table grapes for export. Thompson Seedless and Flame Seedless account for the bulk of production. Varieties like Red Globe, Superior Seedless, Crimson and Autumn Royal continued to increase in the last few years, as most of the replanting has been with these varieties. Table Grapes are planted from Atacama Region (Copiapo) to Maule Region (Curico-Talca). Crop Area Industry sources agree that new additional plantings are not likely for the next few years as economic returns have been affected by increasing costs and falling prices for table grapes. Additionally, a revaluation of the Chilean peso against the dollar has not being helping the fresh fruit export industry in general, as their cost are in pesos and the income is in dollars. 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 generally accounts for about 10 percent of total output, while processing accounts for another 30 percent. Trade: Table grape export volumes rose in CY2011 when compared with the previous year, as a result of a larger production. In CY2012 exports? will be similar than the previous year but at a smaller export value as international prices have fallen. Close to 50 percent of total exports go to the US. The EU is Chile?s second table grape 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 62,470 Area Harvested 53,085 53,085 53,118 53,118 53,125 Commercial Production 1,100,000 1,100,000 1,210,000 1,210,000 1,200,000 Non-Comm. Production 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 Imports 282 282 250 250 250 Total Supply 1,105,282 1,105,282 1,215,250 1,215,250 1,205,250 Fresh Dom. Consumption 323,979 324,197 380,250 375,250 365,250 Exports 781,303 781,085 835,000 840,000 840,000 For Processing 0 0 0 0 0 Withdrawal From Market 0 0 0 0 0 Total Distribution 1,105,282 1,105,282 1,215,250 1,215,250 1,205,250 HA, MT Export Trade Matrix Country Chile Commodity Grapes Exports for: 2009 2010 Time Period Jan-Dec Units: Volume Value Volume Value U.S. 467,933 662,567 U.S. 411,496 704,958 Others Others Netherlands 80,979 95,088 Netherlands 68,123 100,769 UK 52,984 78,120 UK 49,658 81,589 Russia 30,492 39,170 Russia 41,387 61,111 Hong-Kong 30,222 45,285 So. Korea 31,103 62,048 So. Korea 25,991 40,525 Hong-Kong 25,191 48,489 M?xico 19,138 25,019 M?xico 18,588 32,400 Germany 13,531 14,314 Brazil 11,699 16,905 Spain 12,299 15,303 Spain 11,499 16,486 China 12,284 19,211 China 9,830 21,148 Brazil 10,872 12,792 Canada 7,698 14,600 Total for Others 288,793 274,775 Others not Listed 93,680 94,814 Grand Total 850,405 1,135,258 781,085 1,306,974 Time Period Jan-Sep Exports for: 2010 2011 U.S. 394,363 654,270 U.S. 378,206 514,893 Others Others Netherlands 68,123 100,769 Netherlands 84,969 112,659 U.K. 49,657 81,588 U.K. 50,749 85,056 Russia 41,387 61,111 Hong-Kong 39,785 63,781 South Korea 31,011 61,702 South Korea 39,310 73,033 Hong-Kong 25,109 48,354 Russia 35,917 47,640 M?xico 18,447 32,084 China 23,797 39,898 Brazil 11,697 16,900 Mexico 19,454 31,359 Spain 11,499 16,486 Brazil 18,728 26,958 China 9,830 21,148 Canada 18,355 22,963 Canada 7,672 14,540 Spain 11,945 15,169 Total for Others 274,432 343,010 Others not Listed 94,740 107,855 Grand Total 763,536 1,255,352 829,070 1,197,926 Note: Volume in M.T. and Value in Thous.US$ F.O.B. Commodities: Pears, Fresh Production: Frost in some production areas during the winter of CY2010 did not affect pear production negatively. As a result the total output exceeded previous estimates. For the coming season it is still early to predict production volume of pears. Weather conditions during this last winter months (CY2011) have been good allowing enough cold hours to accumulate for a good budding which again which will have a positive effect on total production. The industry is predicting a similar than last year?s output and exports of pears for the coming season. There are over 36 pear varieties grown in Chile. Packam's Triumph and Beurre Bosc make up over 60 percent of Chile's exports. Other important varieties in Chile are Abate Fetel, Coscia, Summer Bartlets and D?Anjou. Consumption: Most pears are consumed fresh because only a few existing varieties in Chile can be processed for canning or juice concentrates. Domestically consumed pears are mainly export rejects. Trade: Exports are expected to be similar than last year. 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 6,590 Area Harvested 6,000 6,000 6,000 6,000 6,000 Bearing Trees 2,981 2,981 2,981 2,981 2,981 Non-Bearing Trees 285 285 285 285 285 Total Trees 3,266 3,266 3,266 3,266 3,266 Commercial Production 260,000 260,000 280,000 288,000 285,000 Non-Comm. Production 2,000 2,000 2,000 2,000 2,000 Production 262,000 262,000 282,000 290,000 287,000 Imports 61 61 20 20 25 Total Supply 262,061 262,061 282,020 290,020 287,025 Fresh Dom. Consumption 81,488 262,061 83,020 85,000 85,000 Exports 116,773 116,261 129,000 130,000 131,000 For Processing 63,800 63,800 70,000 75,020 71,025 Withdrawal From Market 0 0 0 0 0 Total Distribution 262,061 442,122 282,020 290,020 287,025 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 15,352 U.S. 16,916 16,448 Others Others Netherlands 26,739 21,985 Netherlands 16,990 16,330 Italy 14,605 16,961 Colombia 16,555 13,461 Colombia 13,514 10,168 Italy 13,039 15,249 Peru 9,790 5,935 Peru 11,295 7,665 Venezuela 8,460 13,111 Ecuador 8,931 6,543 Ecuador 6,730 4,502 Germany 4,774 4,513 Germany 5,179 4,380 Russia 4,520 4,180 Spain 5,032 4,800 Spain 4,334 4,553 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 13,821 Grand Total 129,570 113,898 116,281 106,949 Time Period Jan-Sep Exports for: 2010 2011 U.S. 16,916 16,448 U.S. 19,971 12,847 Others Others Netherlands 16,990 16,330 Netherlands 20,015 18,195 Colombia 15,440 12,464 Colombia 17,997 15,825 Italy 13,039 15,249 Italy 13,924 14,460 Peru 10,037 6,755 Ecuador 10,511 8,372 Ecuador 8,677 6,350 Peru 10,332 7,381 Germany 4,774 4,513 Venezuela 8,584 9,971 Russia 4,520 4,180 Germany 5,727 3,417 Spain 4,334 4,553 Russia 4,268 4,539 Saudi Arabia 2,546 2,426 Spain 3,189 3,086 France 1,997 1,919 Mexico 2,144 1,901 82,355 96,690 13,785 15,661 113,056 104,168 132,322 114,092 Note: Volume in M.T. and Value in Thous.US$ F.O.B. Commodities: Apple Juice, Concentrated Production: Chile?s production of apple juice concentrate (AJC) primarily reflects foreign demand and apple availability. Although, the AJC industry has encouraged farmers to produce sour-type apples, as well as to expand new plantings of apple varieties mainly for juice purposes, it still processes almost only export rejects. The apple juice industry competes with the pulp and dried apple industry for the apples left from the fresh exported process. As a result of a strong export demand for concentrated apple juice, reflected in an increase of the export price which raised the export value by an estimated 80 percent when compared this year?s export against the same period of last year. Export volume also rose over 80 percent during the first 9 months of 2011 when compared to the same period of last year. The industry predicts a strong demand during CY2012 and expects to increase apple purchases during the next harvesting season. Consumption: Limited amounts of AJC, principally single-strength juice, are consumed domestically. AJC competes with a variety of fresh and processed juices in Chile. Trade: The United States is Chile's largest AJC export market, accounting for 60 percent of total export sales. Other markets of increasing importance are Japan, Mexico and Canada. Latin American export markets also are growing fast. 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. Production, Supply and Demand Data Statistics: Export Trade Matrix Country Chile Commodity Apple Juice, Concentrated Exports for: 2009 2010 Time Period Jan-Dec Units: M.T. Units: Volume Value Volume Value U.S. 23,770 24,447 U.S. 18,599 18,511 Others Others Japan 5,207 5,990 Canada 5,405 5,872 M?xico 3,761 4,585 Japan 3,834 4,076 Canada 3,677 3,130 M?xico 3,809 4,117 So. Korea 848 906 Netherlands 1,689 1,958 Costa Rica 199 352 Germany 1,264 1,427 Peru 140 200 So. Korea 1,056 1,302 Panam? 123 155 U.K. 480 558 Venezuela 98 106 Argentina 458 484 Ecuador 56 94 El Salvador 294 322 Dominican Rep. 55 74 Peru 184 257 Total for Others 14,164 18,472 Others not Listed 212 662 Grand Total 38,146 40,318 37,732 39,847 Time Period Jan-Sep Exports for: 2010 2011 U.S. 13,608 13,125 U.S. 21,332 37,059 Others Others Canada 4,460 4,572 Canada 8,720 16,879 Japan 3,089 3,203 Germany 4,229 8,357 M?xico 2,784 2,997 Japan 3,626 5,725 So. Korea 730 886 M?xico 3,420 6,180 Netherlands 322 321 U.K. 2,305 4,649 Argentina 249 261 So. Korea 1,797 3,607 U.K. 249 233 Netherlands 1,090 2,226 El Salvador 220 239 Poland 533 1,008 Peru 147 209 Spain 442 887 Venezuela 137 152 Argentina 334 492 12,387 26,495 486 801 26,481 26,857 48,628 88,659 Note: Volume in M.T. and Value in Thous.US$ F.O.B.
Posted: 22 November 2011

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