According to the GAIN Report, for MY 2021/22, it is estimated that the peach and nectarine production in Chile reached 160,000 MT. The overall production volume for both crops is a 0.6% decrease with respect to the previous MY 2020/21. The decrease in productivity is mainly due to expected drought conditions in growing regions. However, the planted area for both crops is starting to set up a trend directly related to its export potential.
The peach and nectarine planted area together reached 7,335 hectares in MY 2020/21. However, the fresh peach planted area remains in a declining trend totaling 1,902 hectares in MY 2020/21, which is a 10% decrease from the previous season. According to the report, the continued decline in peach production directly responds to the difficulties in commercialization that peaches face. In contrast, the nectarine planted area reached 5,433 hectares in MY2020/21, a 1.9% increase over the previous year.
Source: Gain Report USDA
The increasing trend in fresh nectarine planted area responds to the preference of commercialization for this product within Chilean producers and has offset the decrease in peach planted area. Therefore the GAIN report has forecasted the planted area to remain slightly higher and reach 7,350 hectares in MY 2021/22. However, the decrease in productivity due to expected droughts has reduced the production forecast by 0.6% from that of the previous season to 160,000 MT.
The report also forecasts a decrease in exports by 1% totaling 98,000 MT based on the lower production volume. In MY 2020/21, Chilean exports of nectarines and peaches decreased by 3% from the previous year totaling 99,058 MT and reaching USD 122.5 million. The downward trend in exports responds to the aforementioned commercialization problems that Chilean peaches face due to logistics challenges and quality issues of the fruit.
Chilean fresh peaches have been facing severe quality problems in traveling to distant Asian markets. After long shipping times, they often present quality or condition problems when arriving at the destined markets. These markets also offer low margins for the fruit and demand very high standards for quality and condition, which for Chilean varieties represent a serious issue and has become challenging.
However, in the case of nectarines, the planted and production areas have grown continuously as producers have seen an interesting alternative to diversifying stone fruit production in the fruit. Chilean nectarines have been more successful than peaches in their commercialization as they have been able to gain market share in different markets for their new resistant varieties, which can arrive at distant markets in good conditions. Therefore, nectarines have been more attractive to growers, mainly in the central part of the country where climatic and soil conditions are suitable.
While peaches and nectarines have been going through bumper production seasons over the last years, the Chilean cherry planted area has historically grown year over year. According to the USDA report, the cherry planted area will reach a new record of 44,000 hectares in MY 2021/22, and production will rise to 395,000 MT. However, due to the expected drought and production adjustments that Chilean producers will make to increase size and quality over the following season, cherry productivity will likely decrease in MY 2021/22.
Despite the lower productivity expected, the report estimates a 3% increase in cherry production and a 3% rise in exports for MY 2020/21, with exports expected to reach 364,000 MT at a record high value. While Chilean cherries are exported to more than 50 countries, China is its primary market. Exports to China totaled 321,868 MT in MY2020/21 and represented 91% of Chilean cherry exports.
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