Argentina set for comeback as cherries take centre stage

Argentina is a prominent source of cherries and has carved a strong reputation for sought after fruit flown to the market in a window of its own.

A number of factors come into play when the South American heavyweight swings into action and in recent years, the size of the crop, the exchange rate and freight space have conspired to create some high hurdles for the sector.

This time around, growers and exporters are just days away from the start of what looks to be a promising season, which will come into its own in October and November and dovetail with supply from South Africa, Chile and with later fruit from Los Antiguos in the south of Argentina.

This follows a disappointing year that was characterised by a late start, a short season and lower volumes.

The earliest commercial fruit will be the likes of varieties Royal Dawn and Brooks, and the softer Burlatt will be available from mid-October from the Mendoza region, followed by Lapin and Bing in the main season to name a few.

The main production region is Mendoza, where a research project is being developed for existing and potential investors that intend to expand or diversify their plantation areas. At the same time, Rio Negro and the Neuquén Valley are growing in volume and the southern areas of Trelew and Los Antiguos are important for late season production.

The first lines will be flown to the UK at the end of the month to a ready and willing market.

Jon Clark, general manager of UK importer Total Cherry, says it’s a case of “so far, so good” for the Argentinean cherry crop, but there is still a risk of frost in the coming weeks. “They have had an ideal winter and spring and it looks to be a good season,” he reports. “This is good news for growers, who last year faced a late start, a shorter season and lower volumes.This year, conditions have been favourable with no major detrimental effects - although having said that, you can guarantee by the time of publication a major frost will have hit!”

At first, all the fruit is flown to the UK and at this time, sendings to the UK take just 48 hours from picking. The later volumes are shipped across to arrive in December, January and February, but this only represents around 30 per cent of exports.

“The main Argentinean niche for the UK sits in very early and very late fruit - in both areas, they have opportunities,” says Clark. “New plantations have reduced over the last few years, but as orchards reach maturity and subject to the weather being kind, volumes harvested will increase.

“It’s a little too early to say about returns, but we would expect similar values to last year based on a similar retail price per pack in the UK.

“We are waiting for the challenges to come as the season starts - for sure, there will be some because when everything seems to be perfect something generally comes along to make it a challenge.”

The first cherries from Argentina are highly anticipated in the UK and considered a moneymaker. Across the supply chain, the major players are keen to make the most of this offer once the season kicks off.

Wholesale prices, for example, will reach upwards of £30 for 5kg for arrivals from Argentina, ahead of the Chilean season.

Global Fruit at New Covent Garden Market brings in six to eight pallets of Argentinean cherries a week, in its window. Director Richard Emmanuel insists that cherries prove popular “no matter what the price is”. However, he admits that strong demand means that firms have to commit to the volumes they need early on.

“Cherries are one of the lines that you can sell all year round, no matter what the price is - every year, we get more and more interest,” Emmanuel explains. “Bing is normally the best eating variety that keeps longest, but that won’t come on until later.

“Chile starts a month after Argentina and the US will have finished by then, but there are signs that it might be starting later this year. This gives Argentina a better opportunity to send more fruit and keep prices higher.

“I think a lot of people would always buy Chilean over Argentinean cherries, but there is a three- to four-week gap. Argentinean growers and exporters know how much their fruit is wanted, so we have had to pay more money up front and take more risk. They know they can sell it anywhere in Europe or Asia, so if you want their cherries this year and in the years to come you will have to put your money down.”

But back in Argentina, production is still in flower and the main players are waiting until the risk of frost damage is over at the end of the month to know what volumes will be available.

Marcos Scoffield from Moño Azul is keen to get started on the new season, as “no major factors have influenced production”. The exporter, based in Rio Negro and the Neuquén Valley, will ship small volumes of both conventional and organic cherries to the UK this season following a break in recent years.

However, the stringent requirements laid down by UK buyers is a barrier for many, especially when alternative markets are becoming increasingly attractive.

“Returns were good last season but volumes shipped were low,” says Scoffield. “This season, we still do not know exactly - it mainly depends on the volumes available worldwide and the main volume is normally shipped by Chile at the same point in time.

“The UK market is one of the most challenging as there are more certifications required by supermarkets than the other main destinations and it normally requires different packing than the other destinations. This requires better planning to suit customer requirements, but also increases cost at source.”

However, in the long term, growers and exporters will only see growth at a “slow rate, as investment in Argentina is not easy”, says Scoffield.

Across the sector, it is clear growers and exporters are ready to use this season to make a comeback from last year and secure the future of the category.

Airfreight arrivals will hit the UK market in the coming weeks, but only good planning and fair returns will create a sustainable market for this top-quality fruit.