Reporting from Santiago

Up after all? The Chile Fresh Deciduous Report was released by the USDA Foreign Agricultural Service in late November. The report states that despite challenges with the peso, production and exports of apples and grapes figure to be higher in 2008.
From the executive summary:

On apples:
The industry forecasts an expansion in fresh apple, table grape and peat production, as weather has been favorable in most growing areas. As a result exports of these selected fruits are also expected to expand in 2008. A smaller apple juice output is expected due to a reduced availability apple export rejects as a good quality apple harvest is forecasted.

On apples...

Although it is still early to predict production volume for the coming year, Chile's apple harvest for 2008 is forecasted to be larger than this year’s harvest, as weather conditions has been good in most growing areas. More than sufficient cold hours during last winter had a positive effect on budding, this will affect total production positively in quantity and quality of the production, as it was stressed by contacts in the industry. As a result of a good quality harvest, exports are expected to reach record figure of over 800,000 metric tons in 2008. As 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 density of their orchards, 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.
A larger output together with low stocks of apples in the European Union explains the increase in total exports in 2007. For 2008 a stronger demand is expected, as production in the northern hemisphere has yet not recovered and exports are expected to expand further. Red apple varieties account for about two-thirds of exports, but sweet/sour varieties are increasing in share, while Chile's traditional varieties are losing ground. This trend is becoming more evident each year. Production and exports of new varieties, like Fuji and Pink Lady, are increasing significantly.


On grapes......

Poor weather conditions in some growing areas are the main reason for a slight fall in total production in 2007, when compared to the previous year. For 2008 an increase in total output is expected as weather during last winter has been good in most areas for grape production. Chile produces over 36 varieties of table grapes for export. Thompson Seedless, Flame Seedless and Ribier account for the bulk of production. Varieties like Red Globe, Superior Seedless, Crimson and Autumn Royal have increased significantly in the last few years, as most of the replanting has been with these varieties. Table Grapes are planted from Region III (Copiapo) to Region VII (Curico-Talca).
Table grape export volumes in 2007 fell as a smaller output was obtained. For 2008 a total production expansion is expected together with a good quality production which will result in
an export expansion. As in the past, table grapes are being imported during the off-season. A weaker dollar, would suggest that these imports could increase. However, transport costs remain high due to low volumes and there is also an ample supply of competing low priced
fruits available year around in Chile.

On pears......

As for other fresh fruit, weather has been favorable for pear production in most growing areas; as a result total output for 2008 is expected to be slightly larger than the previous year. The latest planting statistics published in the recently agricultural census show that total planted area to pears is slightly larger than our previous estimate. 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. Although production levels are not expected to change significantly, industry sources have indicated that exports could fall due to an increased competition from Argentina, Chile’s main competitor for pear exports, principally to the European Union, which is also Chile’s main export market. Close to 50 percent of exports are destined for the EU. As a result Chilean exports will depend on fluctuations in the Argentinean production. Additionally, due to increasing cost and lower returns for pear exports an increasing numbers of producers are selling their production to the local processing industries, according to industry sources.