In MY 2022/23, the USDA Foreign Ag Service Santiago, Chile (Post) estimates an 8.6 percent decrease in table grape production, totaling 720,000 metric tons. The decrease in production is caused by a decrease in table grape area planted and by adverse climatic conditions in the central part of the country which lowered yields (Figure 1). Table grape area planted is on a decreasing trend due to low profits and competition from Peruvian fruit in export markets. Area planted decreased from 53,851 hectares in MY 2011/12 to 43,025 hectares in MY 2022/23.
Data from ODEPA shows a decrease in area planted from all table grape production regions (Table 2). Competition from Peru in the U.S. market, high production costs (labor, transport, and chemical products), and the need to update table grape varieties has put downward pressure table grape exporters. Decreases in area planted are especially significant in the Atacama region which has few alternatives to table grape production. In the Coquimbo and Valparaíso regions, reduction in table grape area planted is offset by an increase in citrus area planted. Table grape area planted in the Metropolitana and O’Higgins region decreased by 14.1 percent and 52 percent, respectively, over the last three marketing years. In these regions, area planted with table grapes was replaced by more profitable crops such as walnuts, cherries, and citrus, or by expansion of the urban area.
Consumption:
Post estimates that in MY 2022/23 fresh domestic consumption of table grapes will reach 170,500 metric tons or 23.6 percent of commercial production. This level of consumption represents an 8.2 percent decrease in fresh domestic consumption over MY 2021/22 and is explained by the decrease in fresh table grape production and subsequent higher prices.
Trade:
In MY 2022/23, due to the decrease in table grape production, Post estimates export volume to decrease by 8.7 percent, totaling 555,000 metric tons. In MY 2022/23, data until March, shows that table grape exports increased by 14.2 percent over MY 2021/22. However, MY 2021/22 was characterized by general problems in logistics and delays at ports which caused export to peak in April (Figure 2). Typically, Chilean table grape exports peak in March. Post expects export volume to decrease in April and May of MY 2022/23 as compared to the same months in MY 2021/22.
In MY 2021/22, year-over-year table grape exports increased by 15.7 percent in volume, totaling 608,200 MT (Table 3). The United States is the main market for Chilean table grape exports accounting for 310,033 MT in MY 2021/22, which represents 51 percent of Chilean table grape exports. In MY 2022/23, data until March, shows table grape exports to the United States increased by 7.4 percent reaching 193,409 metric tons (Table 3).
China is the second largest market for Chilean table grapes accounting for 77,627 MT in MY 2021/22, which represented 12.8 percent of total Chilean grape exports. In MY 2022/23 (data until March), Chilean exports to China increased by 32.3 percent, totaling 23,582 metric tons.
Policy:
Chile seeks a systems approach to improve market access to the U.S. for three Chilean growing regions: Atacama, Coquimbo, and Valparaiso. A systems approach would benefit the three Chilean regions by avoiding the use of methyl bromide fumigation to mitigate against European grapevine moth. Fumigation decreases the quality and shelf life of the fruit, which results in lower prices from retailers. Further, fumigated product is ineligible to be certified USDA organic.
USDA’s Animal and Plant Health Inspection Service published a proposed rule on the Federal Register on Monday, October 17, 2022. The comment period ended on January 17, 2023. Currently, Chilean authorities and exporters are awaiting the publication of the final rule. — By Sergio Gonzalez, USDA Foreign Ag Service
