Fresh Deciduous Fruit Annual 2012

An Expert's View about Horticulture and Support Services in Chile

Posted on: 24 Nov 2012

The industry forecasts that this year’s production of table grapes and apples will be similar to last year’s.

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: 10/30/2012 GAIN Report Number: CI1232 Chile Fresh Deciduous Fruit Annual Apples, Table Grapes and Pears Annual Approved By: Rachel Bickford, Agricultural Attaché Prepared By: Luis Hennicke, Agricultural Specialist Report Highlights: The industry forecasts that this year’s production of table grapes and apples will be similar to last year’s. Executive Summary: In spite of favorable weather conditions during this last winter months (Jun-Aug. 2012) with almost no frost in most growing areas and sufficient cold hours accumulated which should have a positive effect on budding to assures a good production, the industry predicts a harvest volume similar to that of last year (an unusually low harvest due to adverse weather conditions). As severe drought continues to adversely affect a large area of table grape production output is expected to be similar in volume than the previous year. Commodities: Apples, Fresh Production: Total output for the coming 2013 production season, although it is still too early for a good prediction on production volume, is forecasted to be slightly smaller than this year’s harvest. Weather conditions during this last winter months (Jun-Aug. 2012) has been favorable with almost no frost in most growing areas and sufficient cold hours have accumulated which should have a positive effect on budding to assures a good production. Nevertheless industry sources have indicated that although the largest area is planted to the Gala variety for which a normal production is expected, some varieties like Fuji, Pink Lady, Breaburn and Red Delicious are affected by alternate bearing. Normal conditions are also expected for the green varieties. For the coming years, since producers have been diversifying their orchards, 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, we could expect that output keeps expanding under normal weather conditions. 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, farmers have been uprooting old orchards. However, in general, the total planted area is on hold due to a significant fall in economic returns on apples 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 this has brought the planted area into a hold after a continuous growth in the past. The exchange rate for the peso fell again during the last 12 months. Other factors, like increasing energy costs and labor shortage which increases labor cost, 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 demand for apples resulted in an increase of the value of exports in MY2011. Economic returns increased also during 2012 as prices obtained for the exported apples increased slightly again. The US continues to be Chile’s largest export market for apples. Production, Supply and Demand Data Statistics: Apples, Fresh Chile 2010/2011 2011/2012 2012/2013 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2013 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 37,300 37,300 0 37,300 37,300 Area Harvested 33,000 33,000 0 33,100 33,150 Bearing Trees 14,845 14,845 0 14,890 14,912 Non-Bearing Trees 1,966 1,966 0 1,921 1,899 Total Trees 16,811 16,811 0 16,811 16,811 Commercial Production 1,496,000 1,421,000 1,400,000 1,350,000 1,300,000 Non-Comm. Production 10,000 10,000 10,000 10,000 10,000 Production 1,506,000 1,431,000 1,410,000 1,360,000 1,310,000 Imports 800 820 500 550 600 Total Supply 1,506,800 1,431,820 1,410,500 1,360,550 1,310,600 Fresh Dom. Consumption 233,400 197,000 195,000 195,000 195,000 Exports 801,400 800,034 750,000 760,000 750,000 For Processing 472,000 434,786 465,500 405,550 365,600 Withdrawal From Market 0 0 0 Total Distribution 1,506,800 1,431,820 1,410,500 1,360,550 1,310,600 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. 121,083 100,139 U.S. 90,634.0 84,160.8 Others Others Colombia 76,614 53,956 Colombia 70,874 56,316 Saudi Arabia 58,979 41,810 Netherlands 60,414 48,910 Netherlands 56,856 38,966 Saudi Arabia 54,202 41,213 Taiwan 51,305 56,435 Russia 48,688 36,990 Ecuador 47,412 30,868 Taiwan 46,451 55,781 Peru 47,185 26,361 Ecuador 46,427 33,352 Russia 38,018 26,629 Peru 37,804 24,051 UK 35,885 28,751 India 29,194 19,206 U Arab Emirates 28,859 19,959 U.K. 29,142 26,689 India 23,035 15,055 Venezuela 26,512 26,806 Total for Others 464,147 449,706 Others not Listed 251,920 260,494 Grand Total 837,149 624,931 800,834 667,228 Time Period Jan-Sep Exports for: 2011 2012 U.S. 90,634 61,288 U.S. 121,885 90,466 Others Others Colombia 64,233 48,535 Colombia 68,758 61,552 Netherlands 60,414 43,576 Netherlands 50,030 33,567 Saudi Arabia 53,962 40,766 Saudi Arabia 47,368 38,810 Russia 48,688 35,364 Taiwan 44,467 53,698 Taiwan 46,451 54,292 Ecuador 43,716 33,186 Ecuador 41,553 28,503 Russia 34,600 27,397 Peru 33,560 20,517 Peru 34,151 24,136 U.K. 29,142 21,814 Venezuela 28,200 34,001 India 29,095 17,900 U.K. 25,946 18,653 United Arab E. 26,406 18,707 United Arab E. 24,626 18,967 433,503 401,862 249,919 210,698 774,056 575,741 734,444 595,895 Note: Volume in M.T. and Value in Thous.US$ F.O.B. Commodities: Grapes, Table, Fresh Production: Although weather has been good in some growing areas for table grape production with sufficient cold hours accumulated during the last winter (Jun-Aug 2012) which assures a good production and harvest in the coming season (MY2013), the industry predicts a similar in volume to last year’s harvest as the northern production areas are being affected by a severe drought. The Atacama (Copiapo), Coquimbo and Valparaiso Region is being affected by this drought for the second year. This area represents an estimated 52 percent of the total planted area in the country. 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 plantings are not likely for the next few years as economic returns have been affected by increasing costs and in general 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, mainly into raisins, accounts for another 30 percent. Trade: Table grape export volumes fell in 2012 when compared with the previous year, as a result of a smaller production. In 2013, industry sources indicate that export volume will probably reach similar levels than in last year but at a larger export value is expected due to a strong demand from the EU. There is reportedly an unsatisfied demand of table grapes in the EU, as producers from Greece, Italy and Spain could not satisfy the demand this past season. There is also a strong demand in China, although still small volumes if compared with other markets, but exports in 2012 expanded 130 percent in volume and 148 percent in value when compared to the previous year. A little over 40 percent of total exports go to the US. The EU is Chile’s second most important 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 2010/2011 2011/2012 2012/2013 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2013 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 62,462 62,462 0 62,470 62,470 Area Harvested 53,118 53,118 0 53,125 53,125 Commercial Production 1,210,000 1,210,000 1,170,000 1,170,000 1,170,000 Non-Comm. Production 5,000 5,000 5,000 5,000 5,000 Production 1,215,000 1,215,000 1,175,000 1,175,000 1,175,000 Imports 200 177 300 250 200 Total Supply 1,215,200 1,215,177 1,175,300 1,175,250 1,175,200 Fresh Dom. Consumption 361,400 361,657 345,300 345,250 345,000 Exports 853,800 853,520 830,000 830,000 830,200 For Processing 0 0 Withdrawal From Market 0 0 Total Distribution 1,215,200 1,215,177 1,175,300 1,175,250 1,175,200 HA, MT Export Trade Matrix Country Chile Commodity Grapes Exports for: 2010 2011 Time Period Jan-Dec Units: Volume Value Volume Value U.S. 411,496 704,958 U.S. 402,060 649,503 Others Others Netherlands 68,123 100,769 Netherlands 85,008 138,555 UK 49,658 81,589 UK 50,792 101,769 Russia 41,387 61,111 Hong-Kong 39,785 74,010 So. Korea 31,103 62,048 So. Korea 39,404 78,762 Hong-Kong 25,191 48,489 Russia 35,917 52,558 México 18,588 32,400 China 23,832 48,610 Brazil 11,699 16,905 México 19,578 32,497 Spain 11,499 16,486 Brazil 18,789 27,184 China 9,830 21,148 Canada 18,484 32,846 Canada 7,698 14,600 Spain 11,945 15,965 Total for Others 274,775 343,535 Others not Listed 94,814 107,926 Grand Total 781,085 1,306,974 853,520 1,430,333 Time Period Jan-Sep Exports for: 2011 2012 U.S. 378,206 514,893 U.S. 336,337 484,474 Others Others Netherlands 84,969 112,659 Netherlands 79,774 109,500 U.K. 50,749 85,056 China 55,152 99,255 Hong-Kong 39,785 63,781 U.K. 49,155 70,319 South Korea 39,310 73,033 South Korea 46,375 90,379 Russia 35,917 47,640 Russia 29,472 41,088 China 23,797 39,898 Brazil 22,314 35,193 Mexico 19,454 31,359 México 22,094 33,313 Brazil 18,728 26,958 Canada 16,750 20,929 Canada 18,355 22,963 Hong-Kong 14,347 24,107 Spain 11,945 15,169 Japan 12,062 21,783 Total for Others 343,010 347,493 Others not Listed 107,855 109,963 Grand Total 829,070 1,197,926 793,793 1,193,180 Note: Volume in M.T. and Value in Thous.US$ F.O.B. Commodities: Pears, Fresh Production: As for apples, it is still too early for a good prediction on pear production volumes. Weather conditions during this last winter months (Jun-Aug. 2012) have been favorable with almost no frost in most growing areas and sufficient cold hours have accumulated which should have a positive effect on budding and assure a good production. We still have to see the fruit setting, as it was indicated by an industry contact. Nevertheless the industry predicts a similar to last year production and stable exports 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 canned pears or juice concentrates. Domestically consumed pears are mainly export rejects. Trade: Exports are expected to be similar to last year. The European Union is Chile’s main export market. Close to 50 percent of pear exports are destined for the EU. Production, Supply and Demand Data Statistics: Pears, Fresh Chile 2010/2011 2011/2012 2012/2013 Market Year Begin: Jan 2011 Market Year Begin: Jan 2012 Market Year Begin: Jan 2013 USDA Official New Post USDA Official New Post USDA Official New Post Area Planted 6,590 6,590 0 6,590 6,590 Area Harvested 6,000 6,000 0 6,000 6,000 Bearing Trees 2,981 2,981 0 2,981 2,981 Non-Bearing Trees 285 285 0 285 285 Total Trees 3,266 3,266 0 3,266 3,266 Commercial Production 288,000 288,000 285,000 285,000 285,000 Non-Comm. Production 2,000 2,000 2,000 2,000 2,000 Production 290,000 290,000 287,000 287,000 287,000 Imports 0 225 25 50 50 Total Supply 290,000 290,225 287,025 287,050 287,050 Fresh Dom. Consumption 85,300 85,000 87,025 87,000 86,000 Exports 134,700 133,551 130,000 130,000 131,000 For Processing 70,000 71,674 70,000 70,050 70,050 Withdrawal From Market 0 0 0 0 Total Distribution 290,000 290,225 287,025 287,050 287,050 HA, 1000 TREES, MT Export Trade Matrix Country Chile Commodity Pears, Fresh Exports for: 2010 2011 Time Period Jan-Dec Units: Volume Value Volume Value U.S. 16,916 16,448 U.S. 19,971 18,039 Others Others Netherlands 16,990 16,330 Netherlands 20,015 21,104 Colombia 16,555 13,461 Colombia 18,355.7 16,699.7 Italy 13,039 15,249 Italy 13,924.2 17,371.1 Peru 11,295 7,665 Peru 10,786.0 8,142.8 Ecuador 8,931 6,543 Ecuador 10,628.5 8,858.5 Germany 4,774 4,513 Venezuela 8,807.7 10,123.8 Russia 4,520 4,180 Germany 5,727.0 6,992.4 Spain 4,334 4,553 Russia 4,268.1 4,622.1 Venezuela 2,560 2,849 Spain 3,189.0 3,933.0 Saudi Arabia 2,546 2,426 México 2,143.8 1,901.3 Total for Others 85,544 97,845 Others not Listed 13,821 15,736 Grand Total 116,281 106,949 133,551 133,758 Time Period Jan-Sep Exports for: 2011 2012 U.S. 16,916 16,448 U.S. 16,576 12,292 Others Others Netherlands 16,990 16,330 Netherlands 20,003 19,108 Colombia 15,440 12,464 Colombia 19,117 18,496 Italy 13,039 15,249 Italy 14,963 15,143 Peru 10,037 6,755 Ecuador 10,119 9,108 Ecuador 8,677 6,350 Peru 9,378 7,249 Germany 4,774 4,513 Venezuela 9,175 10,652 Russia 4,520 4,180 Germany 5,101 3,116 Spain 4,334 4,553 Russia 3,727 3,675 Saudi Arabia 2,546 2,426 Spain 3,094 3,156 France 1,997 1,919 Saudi Arabia 2,315 2,550 82,355 96,992 13,785 14,998 113,056 104,168 128,566 118,392 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 the availability apples for processing. 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, the Chilean industry still processes almost only fresh apple 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 (74 percent increase) which raised the export value by over 2,000 percent and 47 percent in volume from CY2010 to CY2011. In spite of another increase of the export price during the first 9 months of 2012 volumes did not expand as a smaller harvest of apples in 2012 resulted also in a reduced availability of apples for the AJC industry. For 2013 apple volumes and exports are expected to stay at similar levels to last 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 32 percent of total export sales. Other markets of increasing importance are Canada, Japan and Mexico. 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. 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. 18,599 18,511 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 U.K. 2,558 5,169 So. Korea 1,056 1,302 So. Korea 2,288 4,598 U.K. 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 4,995 Grand Total 37,732 39,847 55,339 101,656 Time Period Jan-Sep Exports for: 2011 2012 U.S. 21,332 37,059 U.S. 12,223 24,166 Others Others Canada 8,720 16,879 Germany 4,964 9,505 Germany 4,229 8,357 U.K. 4,187 8,690 Japan 3,626 5,725 Japan 3,161 6,200 México 3,420 6,180 Poland 2,775 5,246 U.K. 2,305 4,649 México 2,318 4,533 So. Korea 1,797 3,607 Canada 2,312 4,434 Netherlands 1,090 2,226 Netherlands 1,603 3,029 Poland 533 1,008 Spain 1,560 3,091 Spain 442 887 So. Korea 1,280 2,716 Argentina 334 492 Ireland 680 1,387 26,495 24,839 801 1,602 48,628 88,659 38,665 76,340 Note: Volume in M.T. and Value in Thous.US$ F.O.B.
Posted: 24 November 2012

See more from Horticulture and Support Services in Chile

Expert Views    
Agriculture Opportunities   By UK Trade & Investment
Almond and Walnut Annual   By Foreign Agricultural Service
Apple, Table Grape and Pear Semi Annual Report   By Foreign Agricultural Service
Almonds and Walnuts Annual Report   By Foreign Agricultural Service
Raisin - Fruit Report   By Foreign Agricultural Service