Ag-Network-Chile

Source: Chilean Central Bank

In the mid 1960s, Chile 's share of all exports of grapes, kiwi fruit, apples and pears from the Southern Hemisphere amounted to only 3.5 percent. At present, Chile is the market leader in terms of volume, and it holds a 48 percent market share with regard to these species.

Chile is the main worldwide exporter of grapes and the second largest exporter of apples and pears.

In the Southern Hemisphere, Chile is the largest exporter of apples, peaches, berries and avocados, ranking second in pears and kiwi fruit.

Notably, 24 percent of the world's grapes and 9.1 percent of the world's peaches are produced in Chile . They are harvested when these fruits are out of season in the Northern Hemisphere, thus making Chile the main exporter for these products in the opposite season.

In the case of vegetables, specifically, average exports surpass US$31 million and the total volume is around 68,000 tons.

The main vegetables exported by Chile are onions, garlic, radicchios and asparagus.

A comparison of fruit and vegetable exports in 2003 with those made in 2002 shows that export amounts increased by 9.5 percent while export volumes grew by 8.2.

TABLE 2: Fresh Fruits and Vegetables Exports

Source: Chilean Central Bank/ *2003 Forecast

There are major changes in terms of the varieties of fruit grown and exported. For instance, Crimson Seedless is a new variety of table grape recently introduced that is expected to continue growing. Traditional groups such as Delicious apples have gradually been replaced by two-colored varieties for which demand is currently rising, such as Gala, Royal Gala, Scarlett, Fuji and Braeburn.

 

Other Prominent Species

Species with considerable expansion rates in terms of export volumes include avocados, blueberries and lemons. The underlying reason is an increased surface area farmed in the last few years.

 

Main Species and Destination Market

At present, Chile makes direct export of more than 75 fruit and vegetable species to 70 markets. The main species exported are table grapes, apples, pears, kiwi fruit, pitted fruit and avocados. As Table 3 shows, the most important species is table grapes since it accounts for almost 36.9 percent of the total volume of exports, followed by apples with 29.5 percent of the total volume.

 

Volume (Tons) - 2002/2003 Season
Species	North America	Latin America	Europe	Far East	Middle East	Total
Grapes	416,217	80,583	129,473	65,650	6,334	698,257
Apples	95,348	202,808	203,945	30,429	65,349	597,879
Pears	19,604	32,113	56,088	716	4,698	113,219
Kiwi fruit	20,508	11,194	72,385	8,180	1,517	113,856
Plums	31,293	15,006	20,688	9,757	1,287	78,030
Nectarines	37,746	9,147	8,379	1,644	86	57,003
Peaches	29,615	15,782	1,107	175	0	46,679
Cherries	8,352	1,410	1,380	2,743	2 8	13,284
Avocados	89,297	123	2,687	8	0	92,115
Blueberries	4,877	7	372	216	0	5,474
Lemons	15,133	0	219	14,026	0	29,378
Other Fruit	90,707	8,899	18,094	9,137	778	54,070
Total 02/03	784,597	377,072	514,817	142,681	80,077	1,899,244
Total 01/02	671,426	440,881	437,592	128,145	74,670	1,752,714
Percent Variation	16.9%	-14.5%	17.6%	11.3%	7.2%	8.4%

Source: Chilean Exporters Association (ASOEX)

 

Destination Markets for Fruit and Vegetables Export

In the 2002/2003 season, the main destination was North America ( United States and Canada ) with 41.3 percent of shipments sent there, followed by Europe and Latin America to which 27.1 percent and 19.9 percent, respectively, of the shipments were sent. As Table 3 shows, the market share in other regions was Far East 7.5 percent and Middle East 4.2 percent.

 

Benefits of Free Trade Agreements for the Industry

The advantages of the Free Trade Agreement between Chile and the United States include the strengthening of the Generalized System of Preferences (GSP), a reduction in the high duties applied to avocados and asparagus, the establishment of a dispute settlement system, and a special committee on phytosanitary matters.

In the Agreement between Chile and the European Union (FU), 85 percent of fresh fruit now enjoy tariff free status. This places Chile in a favorable position versus its competitors.

Fruit and vegetables with high potential such as apples, pears, plums, avocados, raspberries, onions, asparagus and bell peppers can already enter the EU markets under full customs duty exemption. Table grapes enjoy a benefit consisting of free quotas during two very important export periods: from January I to Icily 14 and from November 1 to December 31 of each year. Garlic was granted a 500-ton quota, with an annual increase of 25 tons.

The content of this document (Experience the Flavors of Chile - 2004) was kindly provided by the Export Promotion Bureau - ProChile

• E-mail: info@prochile.cl
• Web: www.chileinfo.com

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