At this year's Global Cherry Summit, held in Santiago, Chile, on April 22, nearly 2,000 industry representatives gathered to set the roadmap for the sector over the coming years, to maintain business profitability.

During the discussion panel titled “Chilean cherries in the world: rethinking the strategy”, industry leaders addressed the main tasks to be worked on. The president of Frutas de Chile, Iván Marambio, said that Chile competes with itself, so in his opinion, the main challenge is to “produce what the consumer is looking for with the highest possible quality.”

Hernán Garcés, president of Agrícola San Francisco Lo Garcés, said that cherries "are a wonderful business that we have built (...). I have been in the industry for over 42 years, and we never expected it to grow to this extent. Today, 50% of the fruit sold by Chile is cherries."

Alejandro García Huidobro, CEO of the exporter Prize, pointed out that “it is a wonderful industry, but we have reached an important ceiling.”

The next step for Chilean cherries

During the panel, the increase in volume of more than 50% in the last season was analyzed.

To exemplify how to deal with this, Ivan Marambio cited the case of the kiwifruit trader Zespri, which "is always thinking about producing more and better. That is what we have to follow."

He also emphasized the importance of unity within the sector: "Unity is strength. It is not fair that people outside take advantage of what we do here without being part of it and without contributing to the financing."

Hernán Garcés also referred to the importance of unity, stating that "we have an excellent opportunity to reach an agreement between all of us and be able to work better. It is everyone's job."

He added that now the industry must act together, calling on growers to join the Chilean Cherry Committee.

Today, the Chilean Cherry Committee represents 80% of the total volume of exporters, who collectively fund promotions and other initiatives that benefit the entire industry.

Quality of cherries

One of the items discussed by industry representatives, and where there is a clear consensus, was the importance of quality.

García Huidobro indicated that "today it is time to mature and analyze the numbers, to see the strategy. We have to stop thinking that everything will be fine."

Andrés Fuenzalida, general manager of Exportadora Copefrut, stated that if the industry wants to continue its business, “we must have an excellent product this upcoming season.”

He pointed out that it is necessary to have technically and commercially validated data, as well as a “firm commitment between exporters and producers.”

“If we want to take care of this business, we need a commitment and a long-term view that historically this industry has not had,” he stressed.

Recommendations

At the end of the panel, the participants gave recommendations to the attendees.

Hernán Garcés said, “We must be in the field, review how our productive equation is, see if the orchards are being profitable, and producing quality fruit.”

He indicated that losses can be generated by pulling up orchards; therefore, “we are going to have a renewal push and pull out the orchards that are giving us the volumes.”

Andrés Fuenzalida recommended looking at the business in the long term and seeking an alliance with the exporters, “because we need producers and exporters to be on the same path and look after the business.”

Iván Marambio sent a message to producers and importers: “Do business with companies that are members of the Chilean Cherry Committee.”

Likewise, Patricio Toro pointed out that “with the collaboration of each of the exporters, producers can do something significant.”

Alejandro García Huidobro recommended seeking alliances and greater efficiency. “Today we have a different challenge, again, the good news is that it depends on us,” he concluded.

Antonio Walker pointed out that "we are facing a new commercial reality, a market that demands more size, better quality, condition, and much more consistent fruit. So we have to design a new orchard management plan to satisfy the quality of fruit that the consumer wants and not what we want to produce."

The SNA leader added that a vital replacement of varieties is coming. “I believe that this year will start a renewal of varieties, rootstocks, and conduction systems.”

Finally, Walker said that “we have to review the cost chain, which will enable us to maintain a reasonable margin under the new commercial scenario.”