Chilean grape returns jump in wake of freeze

The production shortage caused by the September 2013 freeze led to the highest returns for seven years for Chile’s table grape producers during the 2013/14 season, according to a new report from producer association Fedefruta. It shows that returns for the four main varieties produced in the country – Red Globe, Crimson, Thompson and Flame – were significantly higher than in recent seasons.

The biggest jump was seen in Thompson, which generated a record return of US$1.56 per kg, 48.6 per cent more than in 2012/13. This resulted in a net income of US$31,200 per ha.

Crimson Seedless, meanwhile, achieved an average return of US$1.38 per kg, 24.3 per cent more than in the previous season and equivalent to an income of US$27,600 per ha. Production costs averaged between US$23,000 and US$25,000 per ha, according to figures from table grape commission Uvanova.

An analysis of Red Globe, the leading variety in terms of volume, showed more modest gains, with returns averaging US$1.02-US$1.06 per kg and generating US$27,580 per ha compared with production costs of US$20,000-US$23,000 per ha.

“Last season was highly unusual due to the losses caused by the freeze, particularly in early varieties such as Thompson, which saw exports fall by 13 per cent,’ said Alfredo García of Fedefruta, adding that the higher returns did not necessarily indicate that it had been a good season for growers overall.

Returns are based on the price paid by exporters to producers once all the fruit has been sold. Calculating this figure enables producers to compare the performance of different exporters and make better decisions about who should market their fruit, García said.

Fedefruta pointed out that last season’s returns were calculated on the basis of an exchange rate of CLP500 to the US dollar, even though the current rate is more than CLP600 per dollar. “This shows that the industry has yet to see any benefit from the rise in the value of the dollar and producers will have to wait until 2015 to see if they gain anything from the stronger dollar,” García said.