Higher-than-normal temperatures early in the growing season and a slow accumulation of chilling hours caused a delay in Chile’s grape harvest and slowed overall volume, the USDA says in a new report.
The semi-annual deciduous report for Chile estimates Chilean table grape production and exports for 2023-24 will total 630,000 metric tons and 480,000 metric tons, respectively, a 3.3% decrease of both compared with last season.
Table grape area planted has been decreasing for over 10 years due to tight margins, the report said.
“Competition from other suppliers and the low price for traditional varieties such as crimson, flame, or red globe, among others, has pressured smaller table grape exporters to exit the market,” the report said.
Chilean grape acreage has dipped 27% since 2011, according to the USDA.
“In the northern Atacama region, the decrease in area planted has been especially stark due to low prices and high production costs (labor, transport, and chemical products),” the report said. “Grapes from Atacama face fierce competition from Peruvian grapes in the U.S. market, putting downward pressure on prices.”
In addition, demand for new varieties further tightens margins since renewing grape orchards requires a greater investment from producers.
The USDA report said Chile continues to seek a systems approach to improve market access to the U.S. for three Chilean grape growing regions: Atacama, Coquimbo, and Valparaiso. A systems approach would benefit the three regions by avoiding the use of methyl-bromide fumigation to mitigate against European grapevine moth.
USDA published a proposed rule to allow the grape systems approach Oct. 17, 2022. The comment period ended on Jan. 17, 2023, and publication of the final rule is currently pending, the report said.
The top markets for Chilean table grape exports are the U.S., China, the Netherlands, and the United Kingdom. For the 2022-23 season, the U.S. accounted for 53% of Chile’s total grape exports, followed by China with 11.5%, the report said.
Meanwhile, the USDA forecast Chile’s 2023-24 apple crop production at 860,000 metric tons, a 1.1% decrease from last season. Chilean apple exports are projected to drop 1.3% from last season and reach 463,000 metric tons.
The Maule and O’Higgins regions in the central-south part of the country hold 62% and 22% of the apple area planted. Area planted decreased in both regions since many producers have orchards with old varieties that are not profitable in comparison to modern varieties and other crops such as cherries and walnuts, the report said.
Chile’s pear production in 2023-24 is projected to drop by 4.8% to total 200,000 metric tons; exports will decline by 4.7% to 100,000 metric tons, according to the report.
Pear area planted is on a decreasing trend since marketing year 2016-17 because of low margins, the report said. According to government statistics, pear area planted in the O’Higgins and the Maule regions decreased by 17.5% and 15.9%, respectively, in the past three marketing years.
