In W33 in the cherry landscape, the German cherry season concluded with a lackluster ending. W33 was marked by the limited availability of both domestic German and imported Turkish cherries. Furthermore, Polish, Dutch, Belgian, and Italian cherries remained accessible, but their significance had notably diminished.
The Chilean cherry industry expects 2023/24 cherry exports to reach about 100 million boxes after successfully shipping over 80 million boxes in 2022/23. Currently, Chilean cherries are planted in an area of 380 thousand hectares (ha), and there is potential for expansion. Experts emphasize diversifying the cherry export market to reduce dependence on China. Chile's National Agricultural Association intends to expand into new markets like South Korea, Japan, Southeast Asia, Europe, the United States (US), and Latin America, along with North African markets. This push for market expansion is driven by a belief that offering high-quality cherries at reasonable prices is the key to success in new markets.
The 2023 cherry season registered notably lower prices for imported US cherries in China during the annual harvest season from June to August. Despite that, 2023 marks a significant increase in sweet cherry production in the US, with an expected total output of 371 thousand metric tons (mt), a 60% year-on-year (YoY) rise. Washington state, the largest producer, is anticipated to harvest 240 thousand mt, a remarkable 66% YoY increase. Oregon's production is forecasted to reach 51 thousand mt, an increase of 59% YoY. Despite increased cherry production, some US cherries arrived in China with lower quality and subdued consumer enthusiasm, affecting market demand. E-commerce platforms focused on stable sales have not heavily subsidized cherry sales as in previous years due to moderate demand. This situation led to oversupply and lowered prices. However, prices rebounded after exporters reduced supply in response to lower sales. Similarly, US cherry performance in other Asian markets was lackluster, with prices in Vietnam dropping significantly. The first US cherry sea shipments to China arrived in early Aug-23, mainly consisting of larger fruits, contributing to a recovery in market prices.
Lastly, Pakistan aims to boost its cherry exports to China through the Khunjerab border gate, the sole land crossing point between the two countries. This border, reopened in Apr-23 after closure due to security concerns, holds a strategic significance for both countries. It’s also a part of the China-Pakistan Economic Corridor (CPEC). With the Gilgit-Baltistan region of Pakistan being a major cherry producer, a delegation of Chinese business people signed agreements to facilitate cherry trade in the region. Produced in abundance in Gilgit-Baltistan, cherries are viewed as a key export item to China. The trade volume between Pakistan and China reached USD 26.5 billion in 2022, primarily in favor of China. The challenge is to balance the trade equation through increased exports from Pakistan to China via the Khunjerab border, aligning with the strategic goals of both countries.
