China remains the primary destination for Chilean cherries and plays a significant role in the export of Chilean plums as well.

At Fruittrade 2024, Gonzalo Matamala, general manager of Giddings Cerasus Asia, provided an overview of China’s economic landscape. He noted that in recent years, much of the savings of Chinese families had been invested in property. However, with many construction companies going bankrupt and property prices falling, a sense of lost wealth has developed, creating economic uncertainty.

Matamala added that alongside the trade war with the United States and conflicts like Russia-Ukraine, this has contributed to an economic slowdown and a shift in consumer perception. “Everyone is tending to consume less, and this impacts retail, so the Chinese economy is declining,” he explained.

In Matamala’s view, China's current growth rate is "normal," noting that “nobody expected China to grow at 10 or 15% forever. In recent years, growth has been between 4.8 and 5% in various projections.”

He further highlighted that China is far from being a poor country. “There is a large segment of the population that is not poor and has access to high-quality products. This demand will continue as the population ages and becomes more internationalized,” he said.

Another factor impacting China is rising unemployment among young people aged 16 to 24, who are key consumers of products like Sugar Plums.

Looking Ahead

Despite economic shifts, the performance of Sugar Plum exports to China has been strong. Matamala noted that Sugar Plum exports and production have grown steadily, stating, “We have found in China a market that receives the product with enthusiasm.”

While there is good demand for Sugar Plums, Matamala pointed out that the production season is concentrated within two to three weeks, which limits market presence. “We need to try to extend our products’ availability by using different standardizations to maintain market presence for longer.”

He contrasted Sugar Plums with cherries, noting that unlike cherries, Sugar Plums don’t have a holiday tied to consumption. “If we could extend our product’s presence until April, it would be beneficial since that aligns with China’s Qingming Festival,” he said.

Matamala praised the Chilean industry’s progress, saying, “One of the things we’ve done well is standardizing caliber and packaging.” Chile now uses similar packaging to cherries, with boxes of 2.5, 5, and 9 kilos.

He also highlighted the familiarity of Sugar Plums in China, with local production growing by over 300,000 tons last year. However, he advised against varietal replacement, stating, “It’s a single variety in which we should continue our effort.”

Challenges

Matamala also addressed industry challenges, stressing the importance of extending the production peak and improving marketing. “This is the only way to achieve higher volumes,” he noted.

He underscored the need for responsible harvest standards, cautioning exporters against rushing to market with unripe fruit for higher prices. “We can’t make the mistake of sending green plums,” he emphasized.

Matamala explained that Sugar Plums rely on repeat purchases. “We need customers to come back. If our product isn’t high quality and our processes aren’t standardized, we’re in trouble,” he warned.

Promoting Sugar Plums effectively is essential, he added, saying, “We need to market it as a high-quality product and align it with proper harvesting standards.”

Competition also increases when Sugar Plums reach the market, making quality crucial. “If the product is subpar, consumers won’t pay a premium, especially given the current economy,” he observed.

Matamala stressed that the Chinese market demands top quality. “Even if the economy isn’t strong, those willing to pay for imported products expect 100% quality,” he said.

He concluded, “If we deliver a high-sugar, well-colored product, we can command a higher price and bring Sugar Plums closer to the status of cherries.”