Chilean cherry growers suffer millions of dollars in losses due to rains
Chile
Friday 01 December 2023
VU
Preliminary estimates suggest that rainfall damage in south-central Chile could be between 15% and 20% of the production estimate at the beginning of the season (photo: araya.cl).
Chilean cherry growers are facing serious setbacks as a result of last week's heavy rains, which registered up to 40 mm in a single day in the central-southern zone. According to the analysis of the consulting firm Colliers, these rains have caused significant damage, such as cracking, especially in early and late cherry varieties.
This scenario is compounded by lower fruit set due to higher than usual temperatures and an exceptionally wet spring. Preliminary estimates currently suggest that rainfall damage could be between 15% and 20% of the early season production estimate. This is equivalent to a decrease of approximately 19 million boxes in exports, translating into estimated losses of $240 million for growers alone, without taking into account losses for other actors in the cherry industry, such as processing plants, intermediaries or exporters, according to Rodrigo Gil, manager of the Agricultural Fields Area of Colliers.
However, the analysis highlights a positive aspect: those growers who have managed to minimize the damage caused by inclement weather and those who have protective structures in place and will eventually be able to harvest and export will have the opportunity to access better liquidation prices for their fruit. Rodrigo Gil added optimism by pointing out that the decrease in the cost of ocean freight to China, due to lower global demand and the entry into service of new ships, has gone from $14,000 per reefer container in the 2022/23 season to $8,000 for the current season.
fuente: diarioestrategia.cl