Chile Fresh Deciduous Fruit Annual - USDA FAS

Chile Fresh Deciduous Fruit Annual 2009 - USDA FAS

Report Highlights: Due to unstable weather conditions, Chile’s production of table grapes is expected to fall. The projected expansion of apple and the stable pear production will depend on the development of “El Niño” a weather phenomenon which is affecting Chile’s climatic conditions.

Executive Summary: New estimates show that production of table grapes and pears will increase slightly in MY2009 (Jan-Dec 2009), but apple output which has been affected by abnormal high temperatures during late spring and early summer will fall slightly, when compared to the previous season. For the coming year, although it is to early for a forecast no major changes in production are expected as the planted area has not expanded and most orchards have reached their mature stage of production.

The industry forecasts a small expansion in fresh apple production, as weather has been favorable in most growing areas. No changes are expected for fresh pears. For table grape production, due to frost in an extensive area of the main production regions and unstable weather expected as the climatic phenomenon “El Niño” develops, a fall in output is expected. No major changes are expected for apple juice production.

Table Grapes As a result of favorable weather conditions in most growing areas during the summer and harvesting time, total output in MY2009 (Jan-Dec 2009) resulted slightly larger than the previous year. For the coming season, production is forecast to be smaller than this season as weather has been unfavorable for table grape production. Frost during September and beginning October has damaged many planting from Region III (Copiapo) through Region VI (Rancagua), at certain areas temperatures below -2º C were measured in the Copiapo area affecting reportedly over 300 hectares. In Region V (Aconcagua) a similar situation was reported but damages were not as extensive. In general, an industry source has indicated that production is expected to fall at least over 10 percent when compared to last years output. A contact at Fedefruta (The Fresh Fruit Producers Association) has indicated that although the production volume will be affected, a good quality production is expected and the supply of the export market is expected to be normal. The But there is another negative factor that could affect total volume and quality of the production, is the development of a climatic phenomenon called “El Niño” which calls for unusual rain during
summer and up normal temperatures in most growing areas. This climatic phenomenon could affect the quality of the production and for sure increase the costs of production (more spraying will probably be necessary). 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 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).

Crop Area The Ministry of Agriculture together with the Producers Association updated table grape planted area figure based on the 2007 agricultural census together with special table grapes nation wide case studies. As a result, we have adjusted upwards the total planted area and harvested area of table grapes in our PS&D table for 2009. Nevertheless, 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. Returns fell reportedly almost 20 percent in 2009, when compared to the same period last year, in spite of the larger exported volumes.

Trade:Table grape export volumes increased in 2009 as a result of a larger and good quality production. Exports to the US expanded almost 10 percent in 2009 when compared to the previous year, mainly due to more favorable dollar value when compared to the Euro. Nevertheless, the EU remained as the second export market in spite of a fall of almost 15 percent of the deliveries to that market. For 2010 a smaller production is expected. As a result exports are expected to fall accordingly. As in the past, table grapes are being imported during the off-season.