Earlier this year, during the Chinese New Year, the price of cherries skyrocketed, thanks to the recent frenzy that the delicate and expensive fruit has created. The market in China has opened up even more and opportunities abound as a result of the huge profits made by the industry this year. However, Alberto Navajas, from Rucaray S.A., warned the audience at a panel discussion during PMA Fresh Connections China, which focused on global trends in production, about the possible bottlenecks that the industry might face in future.
Currently, five countries are allowed to enter cherries into China: USA, Chile, New Zealand, Australia and Tajikistan. "We can expect the entry of smaller countries in the Chinese market, and that's good for the continuous supply of cherries," Navajas said.
However, China imports most of its cherries from Chile and, even though consumption continues to grow, Navajas considered it was a risk that must be mitigated in the future.
Chile has developed a very intense campaign in China. According to Navajas, each year, Chilean cherry exports to China represent 10% of the volume traded worldwide. This year, the country sent more than 2,000 containers.
"75% of our total volume is intended for Asia, 62% of which goes to China," Navajas said. "This is amazing, but it's a little scary. It could be a risk, because we are working mainly to supply China," he said.
Hong Kong and Taiwan account for 6% and 5% of annual exports of Chilean cherry respectively. "It's a bit worrying in terms of portfolio. We are too focused on China and such a strong offer can be a double-edged sword. There's so much interest in cherries now that we know of 25 breeding programs in Chile for the creation of new varieties," he said.
