Argentina’s efforts to expand cherry exports to China, considering the competition with Chile and the potential impact of the Chancay Port:
Argentina’s Cherry Export Ambitions in China:
Argentina gained access to the Chinese cherry market in 2019 and is working to grow its exports. Its cherry season (November-February) complements Chile’s, potentially supplying the Chinese market during winter, especially for Lunar New Year. Patagonia is a key production region, known for high-quality cherries.
However, Argentina faces significant challenges:
Logistics & Distance: Shipping times are longer (around 40 days) compared to Chile’s 20-25 days, impacting freshness.
Competition: Chile overwhelmingly dominates the Southern Hemisphere cherry market in China, supplying over 90% of off-season imports.
Quality Control: Maintaining quality over long transit is crucial.
Tariffs: Unlike Chile, Argentina does not have a Free Trade Agreement (FTA) with China, meaning its cherries face a 10% tariff.
Despite these hurdles, opportunities exist: air freight trials for premium markets, strengthening trade ties with China, and leveraging the Lunar New Year demand. In 2022/23, Argentina exported about 4,000 tons of cherries to China, a small fraction of Chile’s 370,000 tons.
The Potential Game-Changer: Peru’s Chancay Port
The new Chancay Megaport in Peru, expected to open in late 2024, could significantly benefit Argentina’s cherry exports to China by:
Reduced Transit Time & Costs: It could cut shipping times to China by approximately 10-15 days, potentially making Argentine cherries more competitive and fresher upon arrival.
Improved Cold Chain & Efficiency: The port’s modern cold storage and efficient handling facilities are vital for perishable goods.
Diversification: It offers an alternative to relying on congested Chilean ports.
Enhanced Competitiveness for Lunar New Year: Shorter transit could ensure fresher cherries for the crucial pre-Lunar New Year demand.
However, challenges remain, including the need for cost-effective land transport from Argentina to Chancay, Chile’s entrenched dominance, and Peru potentially prioritizing its own fruit exports.
Chile’s Dominance in China’s Cherry Market:
Chile’s overwhelming lead in cherry exports to China is due to several factors:
First-Mover Advantage & FTA: Chile secured market access and a zero-tariff FTA with China much earlier (2005/2006).
Optimized Supply Chain: Chile has highly efficient air and sea freight routes and master-level cold chain management.
Massive Production Scale: Chilean cherry orchards are about ten times larger than Argentina’s, with a strong focus on the Chinese market.
Strong Marketing & Branding: “Chilean Cherries” are a recognized luxury gift for Chinese New Year, backed by strong marketing and e-commerce partnerships.
Can Argentina Catch Up?
While Chile will remain the top supplier, Argentina has the potential to grow, leveraging its late-season advantage and the Chancay Port. However, it needs to overcome the lack of an FTA, smaller production scale, and weaker brand recognition. Investment in orchards, improved logistics, and targeted marketing will be crucial for Argentina to become a more significant competitor in China’s lucrative cherry market. https://www.facebook.com/jeff.mah.5/videos/1935560960606703/?__cft__[0]=AZVuNw3NRzca-Sbl1SaYQg6Yi26lP-1_cKCXzFJQ4fwBLkh1eWxurigSuLLexW-yZxOZda4971yEJBkrvSfBalvnjMME1IbKWdSrWY5JRHoyvXfPW5YeX38AWI9vl8fpG9-bAmv6_0AMXf4f1OKhL45hEjdaKh4ApmoUBJukYfWfjA&__tn__=%2CO%2CP-R
