Cherries market in Latin America and the Caribbean

Earlier Report Observations

From 2018 to 2023, the production and export of fresh cherries in Latin America and the Caribbean grew substantially, primarily driven by Chile's strategic expansion of cherry orchard area and adoption of new varieties and management practices. This increased output was supported by improved market access, including tariff reductions for exports to the European Union and a favorable exchange rate that boosted returns for fruit exporters. Strong demand from China, where high prices were sustained through quality improvements and coordinated weekly shipments, provided a consistent outlet for the growing volume, while markets like South Korea also showed notable growth.

The market's expansion faced a temporary setback in 2020 when the COVID-19 pandemic disrupted promotional campaigns and logistics, coinciding with a dip in domestic market volume. However, robust Chinese demand for fresh cherries and enhancements in cold storage infrastructure helped fuel a recovery. Subsequent years saw record export volumes from Chile, facilitated by regulatory measures such as specific phytosanitary guidelines for the Chinese market and the use of dedicated charter vessels to avoid port congestion. The listing of major player Prize on Nasdaq in 2022 underscored the industry's growing global integration and access to capital.

Continuous growth was achieved through a focus on production quality, including the use of disease-free rootstocks to ensure fruit health. However, heavy reliance on the Chinese market, which absorbed around 88% of Chile's exports, led to price declines in 2023 due to oversupply and concentrated shipments. This highlighted the strategic need for market diversification. Meanwhile, other regional producers like Argentina increased production by converting orchards to focus on fresh market varieties, supported by technology and quality upgrades, contributing to the overall market expansion.

Production cherries in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of cherries, 2017-2020

World map of production of cherries, 2017-2020

Cherry production in Latin America and the Caribbean has grown for the third year in a row. In 2020, the region produced 295.3 thousand tons of cherries, showing a modest increase of 1.9% compared to 2019. Looking at the period from 2017 to 2020, production surged by 114.7%, which translates to an impressive compound annual growth rate of 29.0%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of growth, the value of cherry production in Latin America and the Caribbean declined. In 2020, the output was valued at 2 036 million US dollars, marking a decrease of 5.4% from the previous year. However, over the broader timeframe from 2017 to 2020, production value still rose by 102.7%, equivalent to an annualized rate of 26.6%. The peak value occurred in 2019 at 2 152 million US dollars, with the most significant increase of 54.1% recorded in 2018.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports cherries from Latin America and the Caribbean

Exports in kind, K t

Cherry exports from Latin America and the Caribbean have increased for the third consecutive year. In 2020, the region exported 234.5 thousand tons of cherries, up by 6.7% compared to 2019. From 2017 to 2020, exports grew substantially by 189.5%, representing a compound annual growth rate of 42.5%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

Between 2017 and 2020, China dominated the export structure in volume terms, accounting for 86.0% of total flows. Other destinations played a relatively minor role in comparison.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

The export data shows irregular fluctuations, pointing to a volatile market environment. The lowest export value was recorded in 2017, while the highest was in 2019, with a 2.8-fold difference between these years. In 2020, cherry exports from Latin America and the Caribbean amounted to 1 617 million US dollars, reflecting a slight decrease of 1.0% from the previous year. The peak value was in 2019 at 1 633 million US dollars, with the largest increase of 94.1% occurring in 2018.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, China was the primary destination for cherry exports in value terms, making up 89.0% of total flows. Other markets contributed much smaller shares, forming a long tail of minor partners.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports cherries to Latin America and the Caribbean

Imports in kind, K t

Cherry imports into Latin America and the Caribbean have declined for the second year in a row. In 2020, imports stood at 7.3 thousand tons, down by 3.1% from 2019. Over the period from 2017 to 2020, imports decreased by 12.9%, equating to an annualized decline of 4.5%. The highest import volume was in 2018 at 9.0 thousand tons, with the largest increase of 6.7% also recorded that year. The most significant drop occurred in 2019, with a decline of 15.7%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

During 2017–2020, the United States was the leading source for cherry imports in volume terms, accounting for 33.7% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

After two years of growth, the value of cherry imports into Latin America and the Caribbean declined. In 2020, the region imported cherries worth 28 million US dollars, representing a sharp drop of 19.2% compared to 2019. From 2017 to 2020, imports decreased by 8%, which corresponds to an annualized rate of -2.7%. The peak value was in 2019 at 35 million US dollars, with the largest increase of 13.2% also recorded that year.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

Over the 2017–2020 period, the United States dominated the list of cherry suppliers to Latin America and the Caribbean in value terms, holding a 38.1% share of total imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Latin America and the Caribbean in value, 2017-2020