Pink Lady Apple Farmers Are Concerning Over High Cost of Sea Freight
Fresh Apple
Chile
Supply Chain Management
Market & Price Trends
Fernando Dupuis
Published Apr 5, 2022
Producers of Pink Lady apples and apples in general are being very cautious in their exports this season. This is due to the high cost of sea freight. In certain cases, the value of the transport is higher than the total value of the cargo; which, in the suppliers opinion, is an aberration. Production costs for the Pink Lady variety are also rising due to the following reasons: scarce labor and rising labor costs, rise in fertilizer costs, and packaging material that has doubled its price compared to last season (cardboard boxes for example). Speaking on the matters above, a producer and exporter claims that they are only exporting apples as long as there is a defined program behind it. If there is no defined program up front, apple producers prefer to harvest their products for industrial purposes in the Chilean market; such as the production of apple juice or dehydrated apple flakes. They consider this a much safer alternative, in which they will not generate profits but at least will not have losses to regret either. According to the exporter, the abovementioned factors will have an impact on the price of Pink Lady Apples on the European Market.
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