Verfrut to Boost Stone Fruit Exports by 20% Amid Market Challenges
Verfrut plans to export 20% more stone fruits this season, totaling around 2.7 million boxes. They face challenges with plum varieties and market uncertainties, especially in Asia. The company aims to optimize its practices and address logistics issues while expanding into new markets following their acquisition by Unifrutti.
Chile’s 2024-2025 stone fruit season is underway, with Verfrut anticipating a 20% increase in exports compared to last season, projecting around 2.7 million boxes shipped. Sebastián Rodríguez, the commercial director, noted challenges such as issues with early plum varieties, difficulties in the US market, and uncertainty regarding Asian demand for nectarines this season. Additionally, the fruit produced is reportedly smaller than in previous years, prompting the company to search for optimal markets to maximize profitability. Currently, they are at the peak production period for peaches, nectarines, and plums.
North America is a crucial market for all three stone fruit varieties. Rodríguez emphasized the significance of Asia, especially for white-fleshed nectarines and high-Brix plums, while Latin America is essential for peaches. Europe and the UK are vital for nectarines and smaller plums. Regarding the Chinese market, there is apprehension due to high cherry exports and the country’s economic conditions. At present, the situation appears more stable than the previous year, with Verfrut only exporting white nectarines to China. The preference in China leans toward sweet, slightly acidic fruits with a high Brix content, particularly in sizes between 40 to 50.
In January 2024, Verfrut was acquired by Unifrutti, associated with the Abu Dhabi ADQ group to strengthen their global fruit platform. The integration process is active, with strategies underway to align and complement their respective markets. Rodríguez highlighted their objectives for this year, including establishing brand presence in specific markets, maintaining product quality, and promoting the consumption of Chilean stone fruit in the Northern Hemisphere’s winter months. The company aims to expand into less explored markets and achieve favorable results.
Logistics poses significant challenges as transport costs surge towards pandemic levels, coupled with unreliable services and delays. These logistics issues are compounded by weather fluctuations in Chile and the global markets receiving the fruit. Exporters must navigate these challenges vigilantly to avoid oversaturation of markets, which could diminish returns. Consequently, diversifying markets is essential for sustained growth and profitability.
Chile’s stone fruit industry is poised for growth in the 2024-2025 season. Verfrut, a key player in this sector, faces various challenges, including market uncertainties and logistical issues. The company is reacting by optimizing market strategies and addressing production variations, primarily focusing on demand in various global regions. With new ownership under Unifrutti, Verfrut is exploring strategic partnerships to enhance its international fruit distribution.
Verfrut is set to increase its stone fruit exports significantly this season despite facing various challenges in logistics and market nuances. The strategic focus on diverse global markets, particularly for specific fruit varieties, is crucial for maximizing profitability. The company aims to maintain product quality while tackling rising transportation costs and demanding weather conditions. Overall, adapting to these challenges is vital for Verfrut’s success in the competitive stone fruit sector.
Original Source: www.freshplaza.com
