The Chilean cherry plot IN CHINA
PA CA NE WS
• Mendoza Fresh Produce. LLC, operating out of Houston, Texas, for failing to pay a $11,440 award in favor of a Texas seller. As of the issuance date of the reparation order, Victor Mendoza and was listed as member and manager of the business.
• A Z Puchi III Enterprises Inc., operating out of Nogales, Arizona., for failing to pay a $11,580 award in favor of a California seller. As of the issuance date of the reparation order, Alberto Puchi, III was listed as the sole officer, director and major stockholder of the business.
• Rossman Fruit & Veg. Dist. Inc. operating out of Brooklyn, New York, for failing to pay a $102,729 award in favor of a New York seller. As of the issuance of the date of the reparation order, Nitzan Rozman was listed as the sole officer, director and major stockholder of the business.
• G & S Produce Inc., operating out of Los Angeles, California, for failing to pay a $10,676 award in favor of a California seller. As of the issuance of the date of the reparation order, Guadalupe Serafin was listed as the sole officer, director and major stockholder of the business.
Fruits Without a CLEAR MARKET
Producers in Alto Valle face historically low prices, a decline in consumption, and export challenges, while thousands of tons of fruit are at risk of being lost.
The Alto Valle region of Río Negro is experiencing one of the worst crises in its fruit industry in recent years. According to Edgar Artero, a producer in the region, “prices haven’t been this low in 15 years.” Despite rising costs across the board, export companies are offering between 200 and 300 pesos per kilo of fruit, a value producers deem unsustainable. This situation has led many to question whether it’s worth harvesting in the first quarter of 2025, which could leave between 80,000 and 100,000 tons of fruit, mainly pears and apples, uncollected.
The economic impact of this crisis is compounded by high inflation and a lack of investment. Martín Bo-
rocci, a producer from Allen, Río Negro, explained that the current crisis has a cumulative effect. “The last quarter of 2024 was so bad that it dragged prices down at the start of the 2025 season. Additionally, the fixed exchange rate and the tax burden, which hasn’t been reduced at all, make recovery difficult,” he noted. According to data from the Argentine Confederation of Medium-Sized Enterprises (CAME), exports of apples, pears, and quinces from the region fell by 24.6% in volume and 12.2% in value between December 2023 and November 2024.
The crisis is impacting not only the economy but also employment and social sustainability in the region. Each
season, around 15,000 workers, mainly from Tucumán, travel to Alto Valle to participate in the harvest. However, Pablo Diomedi, a third-generation producer, warned that this year, uncertainty reigns among producers. “We have the fruit, we have the people, we have everything, but we don’t know what to do. The domestic market is stagnant, and exports are affected by a depressed dollar and the devaluation of the Brazilian real, one of our main consumers,” he stated.
The potential loss of food in a country like Argentina exacerbates the issue from an ethical perspective. Artero described the possibility of thousands of tons of fruit being left on the
trees to rot as a “sin.” “It’s a shame that no one is doing anything at the provincial, municipal, or national level. Food is being wasted in the fields everywhere instead of being used,” he emphasized.
The sector is facing a perfect storm that threatens the survival of hundreds of small producers. According to Borocci, the lack of credit and increased taxes have weakened the sector’s ability to invest. This is reflected in a domestic market that saw a 10% drop in retail sales in 2024 compared to 2023. Meanwhile, export companies still owe payments from last year, deepening the financial crisis for producers.
Internationally, condi-
European Agriculture IN COOPERATION
European agricultural cooperation is strengthening with the start of annual meetings in Bastia, Corsica, and a year-long schedule spanning multiple countries.
The Joint Committee on Fruits and Vegetables, established in 1997, begins a new cycle of meetings in 2025 aimed at enhancing collaboration between the agricultural sectors of France, Italy, Portugal, and Spain. The first session, focused on citrus fruits, will take place from January 20 to 22 in Bastia, Corsica.
The organizational framework includes an extensive schedule of meetings for specific agricultural products. In February, the strawberry group will meet in Italy, followed by sessions on tomatoes and ready-to-eat (IV range) products in March, held in Italy and Spain, respectively. In April, meetings on garlic, pears, and apples will take place in France, while topics related to peaches, nectarines, and table
grapes will be addressed in Portugal in May and June. The plenary session that concludes the year will be held in Spain in October.
FEPEX, one of the organizations participating since the Committee’s inception, emphasized the importance of this platform: “The Joint Committee represents an essential framework for joint work between sectors with diverse interests but common goals.” Its role, along with that of the Ministries of Agriculture and agricultural sector representatives, is crucial for ensuring the success of collaborative initiatives.
The primary goal of the Committee is to foster collaboration among countries to boost the European agricultural sector. This collabora-
tive approach allows sectors with varied interests to find common ground, generating shared benefits. In this context, contact groups and sectoral meetings are fundamental pillars of its strategy.
The first meeting on citrus fruits not only highlights the importance of this product for Mediterranean countries but also lays the groundwork for discussions on other key crops. Participants, including producers, agricultural attaches, and sectoral organizations, will analyze common challenges and seek coordinated solutions.
With more than 25 years of experience, the Joint Committee has proven to be an effective platform for coordinating agricultural
initiatives. This year’s meetings will take place at various venues strategically distributed across the participating countries, reflecting the diversity and richness of the European agricultural sector.
The inaugural event in Bastia marks the beginning of a year filled with challenges and opportunities for the Joint Committee and all involved stakeholders. Through these meetings, it is expected to strengthen relations among member countries and advance projects that benefit the entire agricultural sector.
THE CHILEAN CHERRY SAGA IN CHINA
As the Chinese New Year approached, Chile’s cherry export industry sent shockwaves through both producers and exporters during the past week. The controversy began with reports of cherry prices in China—the primary destination for Chilean cherries—falling by 50% compared to the previous season. The culprits? Oversupply and quality issues with the exported fruit.
Over 95% of Chilean cherry exports are destined for China, making it a critical market. However, this year, the market witnessed a significant drop in prices. Antonio Walker, president of the National Agriculture Society (SNA), pointed out that the large volume of exported fruit, coupled with its varying quality (particularly smaller-sized cherries), contributed to the price decline. Despite efforts to improve quality, an oversaturated market has taken a toll on prices. Walker emphasized that Chile can no longer export all harvested cherries indiscriminately. Instead, a focus on selecting only the best fruit for export is essential to maintain profitable prices.
How did the news travel, and why has Chile’s “red gold” made headlines worldwide?
ACT ALARMS
The dramatic drop in the prices of Chilean cherries in the Chinese market alarmed exporters during the last season. ProChile, led by its director general Ignacio Fernández, implemented various measures to monitor the situation and coordinate actions with industry groups involved in production and export.
The issue stemmed from a surplus caused by a significant 60% increase in cherry exports to China, reaching approximately 658,000 tons. ProChile’s trade representatives in Beijing, Shanghai, Guangzhou, and Chengdu maintained constant communication with key market players to address the crisis.
Ignacio Fernández stated that these representatives were “on the ground and in constant contact with key players to coordinate the necessary actions.” Fernández also noted that demand for cherries was expected to normalize closer to the Chinese New Year. However, he highlighted that a more in-depth analysis would only be possible at the end of the season.
ProChile Promotes Market Diversification as a Response Strategy
In response to the price slump, ProChile took active measures to mitigate the industry’s impact. A key strategy was promoting market diversification
to reduce overreliance on China, which accounted for more than 90% of Chilean cherry exports.
In collaboration with the private sector, ProChile launched campaigns to promote cherries in alternative markets. For 2025, high-impact initiatives were announced targeting not only China but also India, the United States, Brazil, and member countries of the Association of Southeast Asian Nations (ASEAN). These markets were identified as priorities to diversify export destinations and reduce Chile’s dependence on the Chinese market.
ACT II MEASURES AND EFFORTS
Esteban Valenzuela, then Minister of Agriculture, emphasized that the situation should not be viewed as an “apocalypse for one moment in a single season.” He explained that analysis should be conducted over five-year periods to avoid rash decisions based on short-term events. Guided by this perspective, the Ministry sought to strengthen Chilean exports without succumbing to alarmism.
Impact of Cold Waves and LongTerm Recovery
The crisis in the Chinese market
was exacerbated by cold waves that disrupted agricultural seasons in the region, leading to overproduction and subsequent price drops. In response, the Ministry promoted a longterm recovery strategy focused on reducing dependency on the Chinese market and protecting the export industry from future risks.
Valenzuela stressed the importance of adopting a strategic approach and avoiding decisions dominated by the challenges of a single season. The establishment of new trade offices
in Vietnam and India, along with the reactivation of offices in key markets, reflected a policy geared toward ensuring the sustainability and expansion of Chilean exports.
The experience highlighted a crucial lesson: market diversification and long-term planning are essential to navigating global fluctuations. The measures implemented by the Ministry of Agriculture laid the foundation for a more resilient export sector, less vulnerable to the instability of a single market.
ACT III A RAY OF LIGHT
After a challenging period, Chilean cherries experienced a significant rebound in prices following their initial drop in the Chinese market. Iván Marambio, president of Frutas de Chile, told Portal Frutícola that the industry remained robust despite the observed fluctuations. Marambio stated, “What’s important is that the fruit industry, especially cherries, proved to be solid. We did not rely on one week’s prices. We were not in crisis; we worked to sustain this great industry.”
Impact of the Maersk Saltoro Breakdown and Price Recovery
Between January 1 and 11, the prices of Chilean cherries in the Chinese market dropped significantly. However, beginning January 12, a steady recovery was observed. Julio Ruiz-Tagle, Asia & Americas Manager at D-Quality Survey, reported that after this recovery, prices increased by 5 to 10 yuan per opening, leading to a noticeable improvement in sales. “This meant less volume, reduced fruit stock, and better prices. At that point, the market began to reactivate as older stock was cleared,” explai-
ned Ruiz-Tagle.
The engine failure of the Maersk Saltoro, a vessel carrying a substantial shipment of Chilean cherries, played a pivotal role in reducing the fruit supply in the Chinese market. The ship, with 1,100 containers aboard, was crucial for distribution in Shanghai. The reduced volume availability contributed to the price increase.
On January 15, prices reportedly surged by 20 yuan between the first and last openings of the day, signaling a robust market rebound and renewed optimism for Chilean cherry exporters.
Projections for the Season and Market Diversification
During the second week of January, cherry prices ranged between 230 and 260 yuan per 2-in-1 box, with projections suggesting they could reach 280 yuan by the weekend of January 17–19. The resurgence in demand was linked to the controlled release of stock to reduce older inventory and a decline in available volumes due to shipping delays. However, as the
Chinese New Year approached on January 29, prices faced potential downward adjustments.
Iván Marambio, president of Frutas de Chile, cautioned about the timing of shipments: “If the fruit didn’t arrive by January 28, all of it would be held until after the festivities, causing prices to drop significantly.”
The industry’s reliance on the Chinese market spurred efforts to explore new destinations for Chilean cherries. Julio Ruiz-Tagle, Asia & Americas Manager at D-Quality Survey, highlighted the importance of diversifying: “It was beneficial to move away from dependence on a single market. China was tested in terms of consumption, which pushed the search for alternatives.”
In this context, markets such as Taiwan, South Korea, Singapore, Vietnam, Indonesia, Thailand, and Malaysia gained prominence as viable options to diversify exports. These efforts not only reduced risks associated with over-reliance on China but also opened new opportunities for growth in the global market.
Peruvian Mandarins BREAK RECORDS
Peruvian mandarin exports in 2024 grew by 19% in volume and 35% in value, reaching 230,038 tons and generating over $300 million. The United States led as the primary destination, accounting for 57% of shipments, while Mexico doubled its share, surpassing the Netherlands.
Peruvian mandarin exports achieved outstanding performance in 2024, totaling 230,038 tons and generating revenues exceeding $300 million. This growth represented a 19% increase in volume and a remarkable 35% increase in value compared to 2023, solidifying mandarins as a cornerstone of Peru’s agro-export sector.
The international market responded positively to higher average prices, which rose 14% to $1.30 per kilogram. The United States was the leading destination, importing 129,406 tons and accounting for 57% of total exports, generating $171 million in revenue—a 61% increase in value compared to the previous year. Mexi-
co showed the highest relative growth, doubling its share to reach 20,481 tons exported and $30 million in revenue, overtaking the Netherlands.
In contrast, the Dutch market experienced a decline in volume (-16%) and value (-9%). However, an average price of $1.25 per kilogram, 8% higher than the previous year, helped mitigate the impact. Mexico, now representing 10% of total exports, displaced the United Kingdom to become the second-largest market for Peruvian mandarins.
Nearly 100 companies participated in the export activity, with the Fruit Producers Consortium S.A. leading
the way, accounting for 20% of exports, followed by Procesadora Laran S.A.C. with 15%, and San Miguel Fruits Perú S.A. with 8%. Operations were mainly concentrated at DP World (40%), APM Terminals (27%), and the General San Martín Port Terminal in Paracas (26%).
Sector growth was driven by higher international demand and commercial strategies prioritizing key markets like the United States and Mexico. Additionally, improved average prices allowed exporters to offset fluctuations in less dynamic markets such as the Netherlands.
Shipments reached 33 international destina-
tions, with the United States, Mexico, and the Netherlands as the primary recipients. This performance benefits Peruvian producers and exporters, reinforcing the reputation of Peruvian mandarins in the global market.
The expansion of the Mexican market, now contributing 10% of total exports, and strong performance in the United States reflect the success of implemented commercial strategies. While challenges such as the decline in the Dutch market persist, the overall balance highlights a year of significant achievements for Peru’s agro-export sector.
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Colombia Reduces KEY TRANSIT TIMES
Mexico’s historic dominance in U.S. lime imports, once exceeding 90%, is declining as new competitors like Colombia and Peru emerge.
Mexico, traditionally dominating 80% to 85% of the U.S. lime market, is experiencing a notable shift. According to Ronnie Cohen, a representative of Vision Global Group, “Mexico’s share of over 90% is shrinking as lime industries in countries like Colombia and Peru expand.” This change is driven by the growth of agricultural sectors in these nations and the implementation of more efficient logistics strategies.
Colombia Gains Ground with Shorter Transit Times
Colombia, the second-largest supplier of limes to the U.S., holds between 7% and 10% of the market. Its key competitive advantage lies in reduced transit times:
Shipments from
Colombia to Florida take only 3 to 5 days.
• Shipments to the U.S. Northeast take 6 to 8 days. This logistical efficiency allows Colombian producers to compete in terms of freshness and quality with Mexico, the long-standing leader.
Peru Strengthens its Position as the Third Supplier
Peru has also made significant strides, accounting for 2% to 4% of U.S. lime imports. While still an emerging player, Cohen notes that Peru’s lime sector is following a growth model similar to that of its established agricultural exports, including citrus, grapes, avocados, and blueberries. Importers’ efforts to diversify supply sources are also reducing market volatility.
Guatemala and Honduras: Minor but Consistent Players Guatemala and Honduras each represent about 1% of the U.S. lime market. Although their contributions are relatively small, they remain alternatives. Cohen highlights, “While we do import limes from Guatemala and Honduras, it’s more an exception than a rule,” pointing to the smaller production scale of these countries compared to larger competitors.
Rising Prices Expected from January to March Market trends indicate that lime prices are likely to remain high during early 2025. Cohen predicts, “I think prices will rise to around $50 per box, possibly reaching $60. As always, we’ll have to wait and
see.” This forecast is below the historical peaks of 2023, when El Niño disrupted supply.
Geographic Dynamics in the U.S. Market
The U.S. remains the primary destination for imported limes, with Florida and the Northeast as key distribution hubs. These regions benefit from Colombia’s short transit times, contributing to its growing reputation as a reliable supplier. As Colombia and Peru continue to grow their presence in the U.S. lime market, the landscape is becoming more competitive, challenging Mexico’s longstanding dominance.
