Verfrut plans a 20% increase in stone fruit exports for the 2024-2025 season, anticipating shipment of approximately 2.7 million boxes. Challenges include issues with early plum varieties, smaller-sized fruits, and uncertainties in Asian markets. The acquisition by Unifrutti aims to enhance synergies in market strategies. Logistic issues, including rising costs, present significant hurdles.
Verfrut, a prominent Chilean producer of stone fruits, plans to increase its exports by 20% for the 2024-2025 season compared to the previous year, anticipating shipments of around 2.7 million boxes. Sebastián Rodríguez, the company’s commercial director, acknowledged issues with early plum varieties and uncertainties in the Asian market, particularly concerning nectarines, while noting that the season’s fruit sizes are smaller than before.
Rodríguez highlighted the significance of various markets; North America remains crucial for all three fruit types, while Asia is vital for white-fleshed nectarines and high-Brix plums. Latin America serves as a key market for peaches, with Europe and the UK being essential for nectarines and smaller plums. However, the Chinese market presents challenges due to an influx of cherries and economic concerns, leaving its outlook uncertain.
In January 2024, Verfrut was acquired by Unifrutti, which is part of the Abu Dhabi ADQ group, aiming to enhance its global fruit network. The integration process is progressing, with efforts focused on aligning markets and strategies for mutual benefit. Rodríguez emphasized the need for brand positioning, quality maintenance, and increasing awareness of Chilean stone fruits in the northern hemisphere during winter.
Logistics pose significant challenges, with rising transport costs nearing pandemic levels and unreliable services causing delays. Weather conditions, including heatwaves in Chile and cold weather in recipient markets, can disrupt production and consumption. Rodríguez stressed the importance of diversifying markets to avoid oversaturation and to protect returns on investments.
The stone fruit industry in Chile is experiencing a significant season, with companies like Verfrut aiming to expand their export volumes. As a key player, Verfrut deals with various market demands and seasonal challenges that impact both production and logistics. Understanding market dynamics is crucial to successfully navigating the complexities of international fruit trade, particularly amid changing consumer preferences and unexpected logistical hurdles. The acquisition of Verfrut by Unifrutti represents a strategic move to strengthen its market presence while dealing with the realities of global fruit distribution.
In summary, Verfrut is poised to enhance its exports of stone fruits, capitalizing on demand across important markets. However, the company faces hurdles regarding fruit size and logistic challenges, particularly concerning rising transport costs and market saturation. The acquisition by Unifrutti presents new opportunities for collaboration and growth as the company aims to maintain quality and expand its market reach. Addressing these challenges will be critical for maximizing profitability and ensuring sustainable growth.
Original Source: www.freshplaza.com
