Chile’s kiwifruit industry will try to regain market share in South Korea from New Zealand, according to new president of the Chilean Kiwifruit Committee (CKC).
Recent accusations that New Zealand kiwifruit marketer Zespri was trying to sew up the Korean market through exclusive supply deals with major retailers have been denied by the company, but CKC president Oscar Villegas says Chile’s industry will fight any attempt to reduce competition in Korea.
He says any moves to reduce the choice of products available to Korean consumers will have negative implications for the whole sector.
“It is no surprise that we believe that any efforts to restrict open and free competition will create an unviable position for everyone involved in the supply chain moving forward,” Mr Villegas told Fruitnet.com.
“The Chilean kiwifruit sector will take all those actions `necessary` to actively defend its interests in regards to actions that may hinder free competition and the continued distribution of our products in the international market.”
Zespri signed an exclusive supply arrangement with Korean supermarket chain E-Mart in 2010, and is currently reported to be in negotiation for a similar deal with Lotte Mart, prompting accusations from some Chilean kiwifruit exporters that New Zealand is attempting to shut Chile out of the Korean market.
Other Chilean commentators have instead stated that Chile is its own worst enemy in Korea, having damaged its reputation in the market with fruit shipped before it was ripe in order to capture lucrative early season sales.
Chile has steadily lost market share to New Zealand in Chile over the last few years in the face of effective Zespri consumer marketing campaigns.
During the 2009/10 season, Chile sent 12,000 tonnes of kiwifruit to Korea. Conversely, New Zealand exports about 7 per cent of its total crop to Korea each year, equating to roughly 125,000 tonnes in 2010.
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