Chile needs more time to recover from quake - The Packer

Chile needs more time to recover from quake

03/19/2010 08:49:26 AM
Tom Karst

“Chile is well prepared for these types of seismic events, and growers and exporters will continue to make every effort to meet previously established shipping goals.”

A March 9 news release said: “However, it is important to consider that in general, there seems to be a consensus amongst the industry’s exporters and growers that the critical issues will be resolved within the next five working days, returning to relative normality.”

A March 12 release said: “The Chilean Exporters Association is still estimating that, with the exception of a short-term gap in arrivals this coming week, late-season shipments from Chile should be relatively normal.”

The mixed messages from Chile are to be expected, similar to the story of blind men and the elephant. Every man may touch a different part of the elephant and thus draw different conclusions than the next man. The man who grabs the tusk will have a different observation than the man who touches the ear.

One market observer I talked with this week said that reports of pricing conditions now resembled the varied on-the-ground reports immediately after the quake.

Since the event, talking to five different people would yield five different pictures of just how bad things were. Likewise, talking to five different Chilean fruit marketers in mid-March provides wide-ranging perspectives, from f.o.b.s as low as $16-18 per carton to as high as $30-32 per carton.

As I write this, the Chilean fruit market is trying to adjust to retail seedless grape prices as high as $4 per pound, while at the same time green seedless grape volumes will reach a healthy 1.3 million cartons to the East Coast the week of March 15.

F.o.b. prices for green seedless grapes were expected to slide dramatically as marketers again try to recapture retail pricing closer to $1.50-1.99 per pound.

Given the market’s ebb and flow caused by the earthquake — the USDA said that for the week of March 12 only 4,000 U.S. retailers were promoting grapes compared with more than 7,200 stores the previous week — the USDA should allow Chilean exporters and their U.S. counterparts more time.

The earthquake was a destructive force in Chile that will be felt for years, and the can-do spirit of growers and exporters should not count against the timely exercise of a humanitarian gesture.


What's your take on extending the Chilean grape marketing order date? Leave a comment and tell us your opinion.

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