Chilean Cherry Committee Outlines Forecast & US Promotional Plans

Chile is on track to becoming the world’s largest cherry exporter in coming seasons. To accomplish this feat, Chilean growers increased planted acreage by 81 percent, from 24,710 acres in 2007 to 44,780 acres in 2013. Chile is currently the 10th largest world producer of cherries, according to FAOStat 2010, and the leading exporter in the Southern Hemisphere.

In the 2012 to 2013 season, the Asian market was the largest recipient of Chilean cherries with 70.3 percent of exports. The U.S. followed in second at 15.6 percent, followed by Latin America at 7.6 percent and 5.9 percent to Europe. On the other hand, according to the Global Trend Atlas 2013, Chile is the chief source of imported cherries into the U.S. at 81 percent, followed by 15 percent from Canada and 4 percent from Argentina.

“The potential cherry supply in Chile is growing at rates of 15 to 20 percent annually, hence volumes to the U.S. will continue to grow,” explains Cristián Tagle, chairman of the Chilean Cherry Committee, which formed in March 2012 and now consists of 28 producer and export companies representing over 80 percent of the country’s total fresh cherry exports. “The Chilean Cherry Committee will continue to work on improving frost control programs with measures such as large fans as well as research and development and promotional activities in order to supply North America with quality cherries. The U.S. market is one of great relationship, reliability and commitment.”

“The U.S. market for cherries will continue to grow in consumption. The Chilean Cherry Committee wants to follow this increased momentum with supplying the market with growing volumes year on year,” adds Tagle.

In spite a devastating freeze that saw temperatures in September drop to 19 F for seven hours and another shorter frost a week later — something the industry hasn’t experienced since 1929 — projections total approximately 11 million boxes. This volume represents a 3.48 percent increase compared to the previous season, although down 35 percent from the 17 million boxes the Chilean cherry industry projected pre-freeze. Overall, Chile expects to export 50 million boxes less than its total of 282 million boxes of fruit exported last season, with grapes, nectarines, plums and kiwi most affected.

Chile first airlifts and then sea ships cherries into the U.S. during the three-month window from the beginning of November to end of January.

Karen Brux, managing director North America for the Fresno, CA-based Chilean Fresh Fruit Association, explains. “The Chilean Cherry Committee has already undertaken large scale promotions in other markets such as China. We hope to adopt the tactics appropriate for the U.S. market. In the first year, this will likely include retail promotions, social media and public relations. We will certainly not take the path of generic, one-size-fits all promotions. As we have done for the Chilean Blueberry Committee, and are doing right now for the Citrus Committee, we will work retailers on an individual basis to implement promotions that make sense for that retailer and their shoppers.”

Source: PRODUCE BUSINESS