Chilean grape production and exports are projected to increase in the 2024-25 marketing year, a new USDA report says.
The USDA estimates that Chilean table grape production, aided by high yields, will increase by 6.6%, totaling 723,000 metric tons. Chilean grape exports will increase by 7.8% and total 570,000 metric tons, according to the USDA.
One positive factor for export prospects is a newly approved pest mitigation procedure for shipments of some Chilean grapes to the U.S.
In July 2024, USDA published the final notice allowing Chilean table grapes for certain regions to be imported without methyl bromide fumigation.
“The new requirements will allow table grapes from areas of Chile where European grapevine moth is either absent or at a low prevalence and will also protect U.S. agriculture from Chilean false red mite,” the report said. “These requirements reduce the use of methyl bromide and will also serve to increase the competitiveness of Chilean table grapes.”
Favorable weather conditions, including abundant rainfall and ideal chill hours during the winter, will contribute to higher grape yields.
Area planted for Chilean grapes will decline by 2.3% to 96,371 acres, the report said. The area dedicated to table grapes has been declining for over a decade due to narrow profit margins, increased competition from other suppliers and low prices for traditional varieties like crimson, flame, and red globe.
“The northern Atacama region has seen a particularly sharp decline due to low prices and high production costs, including labor, transport, and chemical products,” the report said. “Grapes from the Atacama region face intense competition from Peruvian grapes in the U.S. market, which drives their prices down.”
The demand for new grape varieties further tightens profit margins, as renewing grape orchards requires a significant investment from producers, the report said. Table grape area planted in the Metropolitana region decreased by 22.5% in the last three marketing years. The grape area planted in the O’Higgins region, which is the top-producing region in Chile, decreased by 5.2% in the last year. In these regions, table grape vineyards were replaced by more profitable crops such as walnuts, cherries and citrus or by the expansion of urban areas, the report said.
The top markets for Chilean table grape exports are the U.S., China, the Netherlands and the United Kingdom. The U.S. accounted for 249,782 metric tons of table grape exports in marketing year 2022-23, which represents 53.2% of Chilean table grape exports.
China is the second-largest market for Chilean table grapes, accounting for 56,928 metric tons in marketing year 2022-23, or 11.5% of total Chilean grape exports.
Apples and pears
The report said Chilean 2024-25 apple production will total 920,000 metric tons, up 0.7% from the 2023-24 season. Exports of Chilean apples are expected to increase by 1% and total 507,000 metric tons, the report said. Declining apple acreage has been a trend for the past decade or so, and the small projected volume increase this season is attributed to high yields.
Chile grows mainly royal gala, Pink Lady, fuji and granny smith, and the report said the most competitive producers are renewing their orchards with new apple varieties such as Brookfield Gala, Pink Lady, Rosy Glow, Ambrosia, Envy, Modi and Buckeye.
Top export markets for Chilean apples are Colombia, Brazil and the U.S.
Chilean pear production in 2024-25 is projected to rise 2.5% to 205,000 metric tons, with exports forecast to rise 4.7% to 104,700 metric tons, according to the report.
Yields will increase due to favorable climatic conditions in the winter and spring and will offset the projected 1.6% decrease in area planted, the report said.
Chile’s top markets for fresh pear exports are Colombia. Italy and Ecuador.
