Reimex alert - the silent enemies

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The Silent Enemies

PA CA NE WS

• The U.S. Department of Agriculture (USDA) has filed an administrative complaint against JJD Produce LLC for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from California, allegedly failed to make payment promptly to nine produce sellers in the amount of $458,339 from December 2021 through November 2022. JJD Produce LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.

• The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Roberson Onion Corp., doing business as Roberson Produce for alleged violations of the Perishable Agricultural Commodities Act (PACA). The company, operating from Georgia, allegedly failed to make payment promptly to 12 produce sellers in the amount of $889,309 from March 2023 through September 2023. Roberson Onion Corp., doing business as Roberson Produce will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDAapproved surety bond.

Chilean lemons SEEK MARKETS

Chile is moving toward gaining sanitary approval for its fresh lemons in Indonesia, with a technical inspection scheduled for 2025 and support from bilateral agreements.

Frutas de Chile confirmed that it is working on opening the Indonesian market to Chilean citrus fruits, particularly fresh lemons, with the goal of securing inspections by the Indonesia Quarantine Authority (IQA) during the 2025 season. The process includes submitting technical documentation and achieving recognition of Chile as a fruit fly-free country. These efforts are taking place within the context of growing Chilean exports to Southeast Asia and aim to capitalize on off-season fruit demand in the region.

Miguel Canala-Echeverría, General Manager of Frutas de Chile, stated: “With Indonesia,

we are looking to advance the market opening for our fresh citrus fruits, as well as to be recognized as a fruit fly-free country.” Chile is recognized for its National Food Safety System, which allows fruit entry through the Port of Jakarta—considered strategic due to its population density and economic activity.

The commercial opening is based on technical data already submitted to Indonesian authorities, specifically concerning lemons.

According to Canala-Echeverría, “all the technical data regarding lemons has already been submitted, and we are seeking recognition of Chilean laboratories to streamline

the process.” An on-site visit by IQA inspectors is also planned for 2025 to verify conditions in orchards and packing facilities.

During the 2023–2024 season, Chile exported 271,392 boxes of fresh fruit to Indonesia, led by table grapes (93%), followed by kiwifruit (6%), cherries (3%), and blueberries (2%). Interest in citrus fruits is driven by Indonesia’s steady demand: the Asian country imports 120,000 tons of citrus fruits annually, worth approximately US$150 million, according to Frutas de Chile.

Demographics also support this strategy. With an estimated population of 300 million

people—48% of whom are under 40—Indonesia represents an attractive market for fresh and healthy products.

Canala-Echeverría noted: “This is a nation with a young population, whose standard of living improves daily, and that enjoys healthy, imported products.”

At the regional level, the Southeast Asian market represents a broader opportunity. With over 600 million inhabitants, the area is a key target for Frutas de Chile’s expansion, alongside markets like India and North Africa.

Canala-Echeverría added: “Southeast Asian markets are very attractive for our exports. These are growing economies, driven by a ri-

Port of Valparaíso Surpasses PEAK SEASON

Coordinación logística permitió sortear alta demanda en temporada frutícola 2024-2025

Valparaíso Port, Chile’s main export hub, successfully navigated the peak of the 2024–2025 fruit season without major disruptions. The busiest period occurred during the penultimate week of 2024, when the terminal handled 5,000 trucks per week, facilitating the dispatch of 50% of the country’s fruit exports—equivalent to 840,000 tons, according to figures from Frutas de Chile and port authorities.

This operation relied on early coordination among Frutas de Chile, port concessionaires (TPS, TPV, ZEAL), public authorities such as SAG (Agricultural and Livestock Service), Customs, and the Ministry of Public Works (MOP), as well as freight carriers. These stakeholders worked together before the season started

to anticipate potential bottlenecks and implement mitigation measures for complex logistical scenarios.

Juan Marcos Mancilla, Logistics Manager at Puerto Valparaíso, stated: “During the season’s preparation, meetings were held with Frutas de Chile and members of the Valparaíso Logistics Forum (Folovap) to identify challenges and key projections.” He added that these meetings led to operational agreements and protocols, applied across both public and private sectors, with ongoing monitoring throughout the season.

The logistical dynamism was especially evident in cherry exports, which represented the highest volume from Valparaíso:

270,000 tons (43% of the national total). The port also handled 145,000 tons of table grapes (54% of the national total) and 80,000 tons of plums (67%). Overall, the season saw a national export total of 1,676,000 tons—an increase of 29% compared to 2024.

Rodrigo Gallardo, Secretary General of Frutas de Chile, praised the logistical response to the production surge: “The port delivered. The fruit that needed to go out, went out. And it went out on time.” He also highlighted the terminal’s role in the regional economy: “5,000 trucks per week were moving during the cherry peak. The level of activity around the port is truly remarkable.”

The strategy included monitoring operatio-

nal variables and implementing corrective actions, confirmed Mancilla: “We developed insights based on a shared understanding of the problems. All this work has led to improvements in logistical process efficiency.” However, no detailed data was provided on wait times, terminal-specific efficiency, or logistics costs related to the peak period.

Public-private collaboration, organized through Folovap, emerged as a key factor in this season’s operational performance. Still, no public data is available on how these measures impacted dispatch times or logistics service quality indicators— preventing a more precise quantitative assessment of the results.

RAIN, PESTS, AND FUNGI

THE SILENT ENEMIES

COAG warns of economic losses due to pests, flooding, and delayed planting

Farmers in the province of Almería are facing serious damage to both horticultural and dryland crops as a result of persistent rains throughout March. Precipitation levels exceeded 100 liters per square meter in some areas, leading to waterlogging, an increase in pests, and critical delays in spring planting, according to the Coordinadora de Organizaciones Agrarias y Ganaderas (COAG).

The most severe impacts have been reported on farms growing broccoli, cucumber, pepper, watermelon, melon, sunflower, chickpeas, cereals, and processing tomatoes—affecting both current harvests and new sowings. The combination of excessive humidity and fluctuating temperatures has triggered the spread of fungal diseases such as botrytis and downy mildew, which are causing root rot and the total loss of some plantations.

Water benefits vs. agricultural damage

Paradoxically, the rains have slightly increased water reserves in a region historically affected by water shortages. However, the excess moisture is having adverse effects on farmland. Despite the rainfall, reservoirs and dams in the area remain at just 10% capacity. Farmers are unable to take advantage of the rainwater due to the lack of proper storage infrastructure, such as ponds or collection systems.

“The company has not announced any immediate plans to invest in this type of infrastructure, despite repeated requests from the agricultural sector,” COAG stated. The organization warned that if this trend continues, future seasons may be at risk due to the lack of tools to store and manage available water resources.

Delays in key plantings Farmers in the Bajo Guadalquivir region report

total losses of crops such as peas and baby fava beans, while the planting of processing tomatoes and peppers—scheduled to start on March 10— has yet to begin. “We need at least 20 rain-free days for the fields to dry out enough for machinery to operate,” COAG noted.

Beyond the direct financial losses, there are also logistical consequences: heavy machinery cannot operate on saturated soil, and workers are struggling to access farms. Waterlogged conditions are preventing both sowing activities and the harvesting of mature crops.

Invisible enemies: pests and fungi

The situation has created a perfect breeding ground for plant diseases. COAG emphasized that

fungal infections like botrytis and downy mildew are affecting both leafy and fruit crops, forcing entire fields to be discarded. “Farm operations urgently need access to a broader range of plant protection tools to handle exceptional situations like this one,” the organization stated.

Adding to the challenge, sudden changes in humidity and temperature are disrupting the behavior of pollinating insects—especially in sensitive crops like watermelon and melon—jeopardizing both the quality and quantity of the upcoming harvest due to impaired natural and manual pollination.

Lack

of structural response

Although the rainfall has once again exposed the

structural vulnerabilities of agriculture in Almería, there are no public details on any immediate actions from regional or national authorities. The absence of emergency agricultural plans, effective weather insurance, or specific compensation measures leaves farmers in a state of deep uncertainty.

Furthermore, COAG pointed out that there is no up-to-date public inventory of existing water storage ponds, nor a clear strategy for building new ones. This lack of infrastructure exacerbates what they call the “water paradox”: having water available, but no way to store it for future irrigation use.

Impact on agricultural planning

Winter crops like cereals are suffering from root suffocation due to prolonged waterlogging,

while spring crops such as broccoli and cauliflower are struggling to complete their growth cycles. In key production areas, artichokes are visibly deteriorating—turning black before they can be harvested.

Although total economic losses have not yet been fully quantified, the impact is expected to affect not only short-term profitability but also the broader agricultural planning for the 2025 season. The lack of suitable planting windows could trigger a chain reaction across distribution markets and pricing.

An uncertain near future Farmers are warning of a highly uncertain outlook, with the looming threat that this situation could continue or repeat. The preliminary damage assessment includes not only physical

crop losses but also a disruption in production planning that may extend into the summer. Without structural measures and expanded phytosanitary tools, the sector’s ability to respond remains limited.

COAG has reiterated its call for institutional action. So far, “the statement included no budget allocations or timeline to address this agricultural emergency,” the organization noted. The lack of official data on compensation or direct assistance programs keeps the spotlight on existing vulnerabilities within the region’s intensive agricultural model.

Chile and Mexico STRENGTHEN TRADE TIES

Technical visit to Manzanillo aims to consolidate exports with a reciprocal focus

On March 17, 2025, authorities from Chile and Mexico held a bilateral meeting on Mexican soil to assess the current state of fruit trade and explore new export logistics routes. The meeting, held under the framework of the Free Trade Agreement in effect since 1999, brought together government and technical representatives from both countries. Its main goal was to reinforce complementary trade and advance efficient sanitary protocols through the Systems Approach program, which allows for phytosanitary inspections at the point of origin.

Participants included Miguel Canala-Echeverría (General Manager of Frutas de Chile), Beatriz Sánchez (Chilean Ambassador to Mexico), and Mario Hernández (Chilean Agricultural Office in Mexico). On the Mexican side, attendees included Ju-

lio Berdegué (Secretary of Agriculture and Rural Development), senior officials from Senasica, and OIRSA’s head in Manzanillo, Raúl Pérez. Agricultural specialist Belman Rodríguez was also present. The main meeting was held in an unspecified city in Mexico, complemented by a technical visit to the Port of Manzanillo.

Promised benefits vs. undisclosed data

According to Miguel Canala-Echeverría, the meeting confirmed tangible progress: “It was a productive meeting, as OIRSA professionals highlighted the excellent results of the pilot import program for grapes under the Systems Approach during the last season. So far, 160 containers of table grapes have entered after being inspected at origin, and everything has been operating smoothly.” However, the exact lo -

cation of the meeting and logistical details for future implementation were not disclosed.

Chilean exports of fresh fruit to Mexico have shown steady growth. Between the 2019–2020 and 2023–2024 seasons, exports rose from 3.57 million to 4.56 million boxes, a 13% increase. The top export was table grapes (36%), followed by kiwifruit (16%) and nectarines (14%). Despite this growth, the statement did not include quantitative projections for future exports.

Evolving logistics and regulatory challenges

Among the agreements discussed was the development of a sea–air route between Manzanillo and Guadalajara, aimed at speeding up domestic distribution within Mexico. However, authorization from Mexican Customs is still pending, delaying its short-term

implementation. The project also includes the launch—by April 2025—of a digital pest-tracking system, in collaboration with the Chile–Mexico Fund.

In terms of trade relations, total bilateral trade between the two countries stands at USD 3.9 billion, a figure that has remained stable over the past five years. Chile currently holds a USD 500 million trade deficit with Mexico, but a surplus of USD 700 million in the forestry and agricultural sector—highlighting the importance of this segment in the bilateral balance.

Productive complementarity with no seasonal overlap

One of the key pillars of the trade relationship is productive complementarity, as Chile and Mexico produce fruit in opposite seasons. This allows them to meet market demands wi-

thout directly competing during harvest periods. Canala-Echeverría emphasized this reciprocal approach: “We focus on agreements that bring mutual and reciprocal benefits.” This strategy is also reflected in plans to expand the Systems Approach program to include kiwifruit and oranges, in addition to the citrus fruits and grapes already covered.

At the same time, Mexico is seeking to boost its own fruit exports to Chile— particularly avocados from Jalisco and mangoes—which could help balance trade flows. However, there are no public estimates on the expected volumes of these Mexican exports, making it difficult to assess the immediate impact on the Chilean market.

Pilot programs underway, but no full timeline

The Systems Approach program—central to technical cooperation—allows for phytosanitary inspections at the country of origin, reducing sanitary barriers at the destination. During the previous season, 160 containers of grapes passed inspections at origin and entered Mexico without incident. Despite this success, technical criteria and cost details of the program’s implementation were not provided, limiting the ability to evaluate the return on investment for producers.

The meeting was initiated by the Mexican government, a gesture acknowledged by Frutas de Chile. “We appreciate the Mexican government for making this meeting happen. We have a long history of bilateral trade, which was strengthened by the Free Trade Agreement that came into force in 1999,” said Canala-Echeverría. He also noted that this was Chile’s second such agreement and Mexico’s first, giving the relationship added symbolic significance.

Peruvian Exports FACE OBSTACLES

Despite surpassing $720 million in February 2025, falling prices in key products create tensions across production chains

Peru’s agro-industrial exports reached $720 million in February 2025, marking a 9% increase compared to the same month last year, according to data from FreshFruit. This growth was largely driven by a recovery in volumes for products like grapes and cocoa, even as sectors such as mango, avocado, and blueberry suffered significant drops in international prices. The year-to-date total reached $1.957 billion (+7.5%), reflecting a mixed landscape of opportunities and challenges.

Volume gains fail to offset price drops in fresh fruit

Although mango export volumes surpassed 75,309 tons in February, the value per ton dropped 47% to $1,400/ton—down from levels seen in February 2024. This price

decline was primarily caused by overlapping harvest seasons in Ecuador and Brazil. Similar conditions were observed for grapes, with exports totaling 64,490 tons but a 23% price drop to $2,670/ ton due to strong competition from Chile in destination markets.

In contrast, cocoa stood out as one of the few products to see a rise in value. Despite a 2% drop in volume, 8,338 tons of cocoa generated $54 million— up 46% in value. This performance is tied to global supply shortages and poor harvests in West Africa, which have driven international prices upward.

Regional and corporate concentration reveals structural vulnerabilities

An analysis by production region reveals a

high degree of concentration. The Ica region accounted for the majority of grape exports, while mango exports were led by Áncash (38%), Piura (36%), and Lambayeque (25%). For blueberries, La Libertad dominated with 67% of shipments, followed by Lambayeque (16%) and Áncash (7%). Avocado exports were highly concentrated in Lima (67%), with smaller contributions from Ica (12%) and Lambayeque (5%).

At the corporate level, market share is also limited. The main exporting companies were Machu Picchu Foods S.A.C. (5%), Camposol S.A. (4%), and Los Olivos de Villacurí S.A.C. (4%). This concentration heightens risks in the event of climate or logistical disruptions, as seen during the avocado campaign, which

suffered from early rains and transportation bottlenecks.

Partial blueberry recovery fails to reverse downward trend

The case of blueberries illustrates a worrying trend. While 13,680 tons were exported in February, generating $63 million, the average price dropped 27% to $4,590/ton. Intense competition from Chile and the United States in global markets has eroded profit margins for Peruvian producers—especially in La Libertad, a key blueberry-producing region.

According to FreshFruit, the competitive landscape limits the chances of short-term recovery, despite efforts to improve quality and reduce shipping times. “Price pressure will persist unless production and logistics calendars be-

tween hemispheres are differentiated,” the report stated.

Cocoa’s momentum driven by global shortage, not local capacity

Cocoa’s strong performance is attributed more to external factors than to structural improvements in Peru’s sector. The global supply shortage and issues in Africa have pushed cocoa prices to historic highs. However, Peru exported only 8,338 tons—a modest figure compared to its potential. Moreover, there is no public data on local investment to expand cultivated areas or improve productivity.

A lack of infrastructure and financing in cocoa-growing regions limits the country’s ability to capitalize on this favorable context. FreshFruit’s report did not provide details on strategies to sustain growth or to diversify markets beyond traditional destinations.

Avocados lose ground due to climate and logistics setbacks

Avocados were hit by a dual blow: weather and logistics. Early rains in regions like Lima and Ica reduced the exportable crop to 22,489 tons. At the same time, issues at ports and on roads drove up operational costs. The result was a 41% drop in export value, totaling only $45 million, along with a 32% decrease in volume.

Camposol S.A., one of the top exporters, did not specify whether these conditions impacted its export targets for the first half of 2025. No official projections have been published on a potential recovery in the coming months.

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