EU kiwifruit oversupply leaves sour taste for Chilean returns

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EU kiwifruit oversupply leaves sour taste for Chilean returns

New storage technologies and greater competition from Mediterranean growers have made their mark on Chilean kiwifruit exporters, in a trend that one industry representative believes is here to stay.

"The oversupply problem is structural and not just for one year. What we have seen is a trend to increase the volume of planting and the fruit supplied globally," Chilean Kiwifruit Committee president Carlos Cruzat told www.freshfruitportal.com.

"In the next year we'll have a very significant stock of fruit in the Northern Hemisphere. Last year what happened is Chile entered the season after a year with very good prices, and so it was assumed that the price would be very similar.

"But that year had been an exception due to frosts."

The executive pointed to a large oversupply of kiwifruit from Italy and Greece, added to New Zealand supply, which the Chilean industry did not fully gauge.

"They asked for prices that could not be given," Cruzat said.

"Prices fell steadily...we were mistaken in how to treat the market."

He said the trend of greater volumes from Greece continued, cutting short Chile's sales windows for later season fruit and also leading European players to hold their fruit in storage.

"Storage technologies have been improving, so the Italians can hold their fruit until July, leaving Chileans with a later entry window in Europe, which accounts for 50% of volume and is very important for us."

In response, he said the Chilean industry ought not ask for prices the market could not give, focusing on quality and trying to raise preferences for Chilean fruit in the market.

Photo: www.shutterstock.com

www.freshfruitportal.com

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