International Trade and Fruit Production in Chile
Chile is one of the largest and most dynamic economies in Latin America with a GDP of approximately US$440 billion (purchasing power parity). Furthermore, Chile is the only South American country to be a member of the Organization for Economic Cooperation and Development (OECD). On Sunday, December 17, the country will elect its next president at the second round run-off between center-left Senator Alejandro Guillier and former right wing President Sebastian Piñera.
International Trade and Fruit Production in Chile
The total area of apple cultivation in Chile during 2016/17 is 36.132 hectares, which is consistent with the most recent ten-year average. Similarly, most of the apple production in the country takes place along its central and southern regions. The current harvesting year 2017/18 has also been favorable due to sufficient rainfall to replenish natural reservoirs and chilly temperatures. Therefore, aggregate fresh apple production is expected to increase slightly to 1.35 million metric tons. Meanwhile, of the total apple production in Chile, some 60% is destined for export and approximately 260.000 metric tons or 14 kilograms per capita will be consumed domestically. In recent years, the main international markets for Chilean apples have been the United States, Colombia, and Taiwan, each representing 14%, 9%, and 8% of the country’s exports (respectively).
Another major fruit in Chile are table grapes (not destined primarily for wine production), which are in fact the most planted fruit in the county. During 2016/17, the total planted area devoted to table grapes has been 47.084 hectares. The majority of Chile’s table grapes cultivation takes place in the country’s central and northern regions. Currently, the regions and areas devoted to table grape cultivation can be transformed for the production of similar high-value niche production, such as walnuts, cherries, olives, and pears, all depending on international market prices. During the 2016/17 season, high temperatures and favorable weather conditions led to an increase in national table grape output, which totaled 911.000 metric tons. Of Chile’s national table grape production, about 62% is destined for fresh consumption, another 22% is used in the production of raisins, 11% is transformed into grape juice, and 5% is destined towards the wine making industry.
Furthermore, of the total table grape production in Chile, some 80% is destined for export and almost 190.000 metric tons or 10 kilograms per capita is consumed domestically. Similar to the case of apples, the main destination for Chilean table grapes is the United States, which account for 47% of the country’s grape exports. Meanwhile, the second international market for Chilean table grapes is China with 13% of the exports. Two key factors within this trade dynamic are the fact that Chile produces and exports fruits during the northern hemisphere’s off-season as well as the fact that trade from Chile to the United States takes 14 days, whereas it takes 30 days for Chilean goods to reach China.