New Table Grapes in Chile

With 2006 generally recognized as a poor year for Chilean table grapes because of competitive markets and a low valued US$, some producers are looking to try their hand in raisin production. With an ever-growing market abroad, raisins could be the answer for Chilean grape farmers who have been hit hard by bad harvests and low prices. Between 2004 and 2005, Chilean raisin exports grew by 42 percent, making raisins Chile's second most important processed food. According to the Association of Food Companies of Chile (Chilealimentos), at the end of the season raisin sales could reach US$80 million and Chile is now the among the top five raisin exporters in the world. The reason for this sudden rise in popularity in Chile is not just the worldwide demand, which exceeds 580,000 tons per year. For table grape farmers in Chile, excess production and low prices have made it difficult to shift into other products. For this reason, some farmers are considering dedicating all their grapevines to raisin production. José Olmedo produced table grapes in Region V until 1990, when he began to produce raisins exclusively. He says he can never lose while he continues to produce raisins. "While with grapes there was always the risk that I could lose money, I'm always sure of earning something with raisins. Not very much, but something." There are two main varieties of raisins produced: large raisins, which are produced from table grapes and are sold as they are, and smaller grapes, which are sold to the confectionery industry.