Chile Expects More Apples, Less Grapes in 2004

SANTIAGO - Jan 5/04 - SNS -- Chilean production of apple and apple juice is expected to be up in 2004; while output of pears should be unchanged and grapes decline because of unfavorable in some production areas.

Although Chile is a major producer of table grapes, apples and pears, there are some opportunities for imports, believes the U.S. agricultural attache here, particularly when domestic supplies are low or non-existent in the off-season.

"A major constraint on demand is price," the agricultural attache said. "Consumers are accustomed to low prices for in-season apples. In general, the market for U.S. fresh fruit is limited by the small portion of Chileans who are willing to pay for higher-priced, off-season fruit only about 10% of the population."

On the export side, contractual arrangements between producers and exporters vary according to the exporting company. A large portion of Chilean fruit is shipped on a consignment basis. After the exporter sells the fruit in a given market, all marketing and transportation costs are deducted from the sale price.

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