Economy
Chilean cherries face a bitter Chinese Lunar New Year: low demand and falling prices
The crisis highlights the dangers of relying heavily on the Chinese market and underscores the urgent need to diversify Chilean exports' destinations.
![Recent price fluctuations and challenges in the Chinese cherry market signal a tough future for Chilean producers, highlighting the urgent need to diversify export markets. [ProChile]](/gc4/images/2025/01/29/48950-cerezas11-600_384.webp)
By Alicia Gutiérrez |
SANTIAGO -- The Chilean fruit industry remains on high alert as the export of cherries to China, initially poised to reach record-breaking profit levels, faced an unexpected downturn in the Chinese market.
Each year, Chilean exporters, from large-scale producers to small farmers, navigate challenging climatic conditions, severe droughts and water scarcity to meet the high demand for cherries in China, where consumers cherish the cherry as a symbol of happiness and prosperity during the Lunar New Year.
However, during China's Lunar New Year celebrations on January 29 -- typically the peak season for cherry consumption -- a sharp decline in prices and demand has started to take a toll on Chilean producers.
Sour turn
On December 9, media outlets in Chile and China celebrated the arrival of the first containers of South American cherries, marked by jubilation and hundreds of eager buyers crowding the local market in Guangzhou to purchase the first boxes of the prized fruit.
At that time, Chilean broadcaster Channel 13 reported that a 5kg box of cherries could fetch up to $141. However, just over a month later, Chilean producers have reported a dramatic drop in prices with reductions of up to 50%.
During the launch of the 2024-25 season in early October, the Chilean Cherry Committee proudly announced a record-breaking 59% increase in export volumes to China.
Chinese Ambassador to Chile Niu Qingbao highlighted the mutual benefits of the trade at the event.
"The cherry trade between China and Chile has not only brought prosperity to Chilean farmers but also joy to Chinese consumers. Cherries are highly favored as gifts during the Chinese New Year. I look forward to the next cherry season bringing an even better harvest and greater benefits for both countries," he stated.
The record export of more than 657,000 tons of Chilean cherries in 2024 primarily benefited China, but it did not bring the anticipated prosperity to Chile's agricultural sector.
Instead, it underscored the risks of relying heavily on a single market and highlighted the pressing need to diversify export destinations.
Cherries topped Chile's agricultural exports in 2024, generating $3.09 billion, according to ProChile, a Chilean agency promoting exports of goods and services.
China bought 93% of Chile's cherry exports.
Diversification
Hernán Garcés, president of Garcés Fruit, one of Chile's largest cherry exporters, raised the alarm over the crisis in a letter to producers published on January 15 in La Tercera.
Just weeks before the Chinese Lunar New Year (January 29), the industry was "facing historically low prices, despite more than 50% of the fruit still unsold," he warned.
The key challenge for the fruit sector is "to open new doors and position Chilean cherries as a high-quality product in emerging markets," Ignacio Fernández, general director of ProChile, emphasized in an interview with Meteored on January 16.
"Diversification is crucial to prevent an oversupply in a single market from destabilizing the entire value chain," he added.
The outlook for the cherry sector remains bleak. On January 15, Antonio Walker, president of the National Agricultural Society (SNA), told Radio Duna that the industry does not expect a price recovery for the remainder of the season.
Walker attributed the price drop to a decline in Chinese consumer spending, caused by ongoing economic challenges in the country.
"The cherry industry is vital for Chile, employing over 350,000 people and cultivating more than 70,000 hectares," he added.
Grim outlook
Walker underscored the severity of the crisis, emphasizing that cherries are a product with a significant economic impact for the country.
"We never expected that the cherries already sold to China would be priced at 50% less than what we achieved the previous year. This is a serious issue," he added.
Heavy reliance on the Chinese market is at the heart of the crisis, Victor Catán, president of the Federation of Fruit Producers of Chile (Fedefruta), said in an interview with Emol.
"The warning signs have been clear for a long time. When you rely on a single market, like China, and that market faces a downturn, there are few alternatives for redirecting the fruit," he stated on January 15, following an emergency meeting with sector leaders to discuss the grim outlook for Chilean cherries.