Drought is a significant long-term challenge for Chilean fruit producers, but there has been some relief in the past year, a new USDA report on the country’s economic outlook says.
Although Chile’s agricultural gross domestic product has grown strongly in the past three years, the report said a big obstacle for Chilean producers is drought.
“Drought is particularly severe in the Atacama and the Coquimbo regions, where the planted area is decreasing sharply and producers have few alternatives to table grapes,” the report said.
The report said the Coquimbo and the Atacama regions account for 17% and 14% of the area planted in Chile to table grapes, respectively, and the grape area in those regions is decreasing, falling nearly 20% in the last decade.
However, more abundant rainfall in 2023 benefited other regions, the report said.
“In most weather stations in the central and southern regions, from the Valparaiso region to the south, there was a surplus in the level of rainfall compared to pre-drought years,” the report said.
The report said a systems approach, instead of fumigation, for pest exclusion for grape exports to the U.S. would help producers regain competitiveness.
Chile is seeking a systems approach to improve market access for table grape exports to the U.S. The systems approach would benefit the Atacama, Coquimbo, and Valparaiso regions, according to the report.
“The regions would reduce current fumigation requirements which significantly decreases the quality and shelf life of the fruit, ultimately increasing their export industry’s competitiveness,” the report said.
The final rule is awaiting publication, the report added.
