Required Report - public distribution

**Date:** 1/12/2006

**GAIN Report Number:** CI6001

CI6001

**Chile**

**Fresh Deciduous Fruit**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Christine M Sloop, Agricultural Attaché

Office of Agricultural Affairs

**Prepared by:**

Luis Hennicke, Agricultural Specialist

**Report Highlights:**

**Chile's production forecasts for fresh apples and pears are up
following good weather conditions, but table grape production is
expected to remain unchanged, as some areas were hit by frost.**

Includes PSD Changes: Yes

Includes Trade Matrix: Yes

Unscheduled Report

Santiago \[CI1\]

\[CI\]

Table of Contents

[**General Summary 3**](#general-summary)

[Fresh Apples 3](#fresh-apples)

[Production 3](#production)

[Crop Area 3](#crop-area)

[Consumption 3](#consumption)

[Trade 3](#trade)

[Policy General 4](#policy-general)

[Marketing General 4](#marketing-general)

[PSD Table 5](#psd-table)

[Export Trade Matrix 6](#export-trade-matrix)

[Fresh Table Grapes 6](#fresh-table-grapes)

[Production 6](#production-1)

[Crop Area 7](#crop-area-1)

[Consumption 7](#consumption-1)

[Trade 7](#trade-1)

[PSD Table 7](#psd-table-1)

[Export Trade Matrix 8](#export-trade-matrix-1)

[Fresh Pears 9](#fresh-pears)

[Production 9](#production-2)

[Consumption 9](#consumption-2)

[Trade 9](#trade-2)

[PSD Table 10](#psd-table-2)

[Export Trade Matrix 11](#export-trade-matrix-2)

[Concentrated Apple Juice 11](#concentrated-apple-juice)

[Production 11](#production-3)

[Consumption 12](#consumption-3)

[Trade 12](#trade-3)

[PSD Table 12](#psd-table-3)

[Export Trade Matrix 13](#export-trade-matrix-3)

# General Summary

The industry forecasts an expansion in fresh apple and pear production,
as weather has been favorable in most growing areas. Table grape
production however, is forecasted to remain stable in MY2006 (Jan-Dec
2006), as the northern production areas were affected by frost.

> Fresh apple exports are forecasted to expand following an increase in
> output. No changes are forecasted for table grapes as a stable
> production volume is expected.

# Fresh Apples

## Production

Although it is still early to predict production volume for the coming
year, Chile\'s apple harvest for 2006 is forecasted to increase to 1.2
million tons, an 8 percent increase over last year's harvest as a result
of good weather conditions. Exports are also expected to increase as the
quality of the production is expected to be good. A smaller harvest in
the European Union is expected to contribute to an expansion in exports.

Producers continue to diversify their orchards by planting new and more
popular varieties, i.e., Fuji, Gala, Jonathan, Braeburn, Pink Lady and
Galaxies. Traditional varieties, such as Red Delicious and its
variations (i.e., Richard Red, Starking, etc) are being uprooted and
replanted with newer varieties. Red apple varieties still constitute
about 70 percent of total output and are grown mainly for the European
and the Middle Eastern markets. The principal green variety, Granny
Smith, is used both for fresh export (mainly to Europe and the United
States) as well as for concentrated apple juice production.

## Crop Area

Although some growers, mainly in Regions VII (Curico-Talca) and VIII
(Chillan), continue to replace and increase their planting densities,
farmers in other areas are uprooting old orchards. However, in general,
the total planted area is on hold due to a significant fall in economic
returns observed during the last two years. A strong peso together with
increased labor costs due to a mandatory reduction in the workweek from
48 to 45 hours is reducing the competitiveness of the labor-intensive
fruit industry in Chile.

## Consumption 

Since there are no official domestic consumption statistics for apples,
figures are estimated as a residual of production and exports. Because
the residual figure includes apples for fresh domestic consumption and
for processing, there tend to be large variations in domestic fresh
consumption in the PS&D tables from year to year.

## 

## Trade

A smaller output together with high stocks of apples in the European
Union and the United States explains the fall in total exports in 2005.
Stocks in the US, were as much as 72 percent higher than the previous
year at the beginning of the export season. As a result, exports to the
US fell to less than half the norm. Stronger demand, due to lower
production in Europe, is expected to prompt increased exports again in
2006. There also will be a larger supply of apples, when compared to the
previous year. The U.S. is still Chile's largest single export market
for apples.

Red apple varieties account for about two‑thirds of exports, but
sweet/sour varieties are increasing in share, while Chile\'s traditional
varieties are losing ground. This trend is becoming more evident each
year. Production and exports of new varieties, like Fuji, are increasing
significantly.

## Policy General

Chile's fruit sector has a voluntary export quality program for apples,
table grapes, stone fruit and kiwis shipped to the United States and
Europe. Nearly 80 percent of Chile\'s exports to these two markets are
under the auspices of this quality program. The minimum standards are
voluntary and will remain the same in 2006 as those applied in 2005.
Currently growers and exporters limit the quality control only to fruit
maturity. There are no requirements related to the size of the fruit or
to the volumes exported. Normally the market sets these requirements.

## Marketing General

Although Chile is a major producer of table grapes, apples and pears,
there are some opportunities for imports, particularly when domestic
supplies are low or non‑existent in the off‑season. A major constraint
on demand is price. Consumers are accustomed to low prices for in-season
apples. In general, the small portion of Chileans who are willing to pay
for higher‑priced off‑season fruit limits the market for U.S. fresh
fruit.

On the export side, contractual arrangements between producers and
exporters vary according to the exporting company. A large portion of
Chilean fruit is shipped on a consignment basis. After the exporter
sells the fruit in a given market, all marketing and transportation
costs are deducted from the sale price. The remaining amount is given to
the farmer, so that he/she can pay his/her production costs and
determine his own profit. Some producers receive a guaranteed minimum
price for their fruit from the exporters. Often the exporters provide
some financing to producers during the growing season. These monies are
then deducted from the grower's receipts at the end of the season. In
Chile, there are presently over 700 fruit exporters, export companies
and/or individual producers that export directly.

Returns to Chile's fresh fruit industry during the last season have been
very poor. In many instances, returns reportedly have been lower than
the cost of production. This poor profitability is forecast to continue
in 2006, due to some ongoing factors. Chile's peso remains strong,
reducing returns to growers. Shipping costs have increased. Competition
from other countries has increased and the seasonal advantage is being
lost due to increasing southern hemisphere competition.

The fresh fruit industry is continuing with its generic promotional
campaign in the United States, Mexico, Japan, S. Korea and the European
Community. This campaign is co-financed by producers, exporters and the
Government (through Pro-Chile). Approximately 3 to 5 cents of every box
shipped to these markets is earmarked for this purpose. The budget for
this coming year is expected to be similar to last season at a total of
US\$5.5 million. The Chilean Government contribution is projected to
fall to 35 percent of the total amount this year compared to 45 percent
last year.

Like last year, approximately US\$ 4 million will be spent in the United
States and Canada and the remainder will be spent in the other markets.
The main activities paid for with these funds are a media campaign and
other promotional activities like cross-promotional point of sales
activities with fruit, wine and salmon; a fresh fruit promotional
sweepstakes; children's and Hispanic materials; and PR activities. The
media campaign is based on TV advertising. The cross-promotional
activity provides for a sweepstakes with grand prize trips to Chile.
Entries can only be made through loyalty card purchases of the
participating Chilean products. Printed materials include display
materials for the Hispanic community, point of sale materials like a
pocket fruit guide and variety posters. There is also a website.

+--------------------+------+-----+-----+-----+-----+-----+----------+
| ## PSD Table       |      |     |     |     |     |     |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Country            | C    |     |     |     |     |     |          |
|                    | hile |     |     |     |     |     |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Commodity          | App  |     |     |     | (HA |     |          |
|                    | les, |     |     |     | )(1 |     |          |
|                    | F    |     |     |     | 000 |     |          |
|                    | resh |     |     |     | T   |     |          |
|                    |      |     |     |     | REE |     |          |
|                    |      |     |     |     | S)( |     |          |
|                    |      |     |     |     | MT) |     |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
|                    | 2003 | R   | 2   | Es  | 2   | Fo  | UOM      |
|                    |      | evi | 004 | tim | 005 | rec |          |
|                    |      | sed |     | ate |     | ast |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
|                    | USDA | P   | U   | P   | U   | P   |          |
|                    | Offi | ost | SDA | ost | SDA | ost |          |
|                    | cial | Est | Of  | Est | Of  | Est |          |
|                    | \[O  | ima | fic | ima | fic | ima |          |
|                    | ld\] | te\ | ial | te\ | ial | te\ |          |
|                    |      | [Ne | \   | [Ne | \   | [Ne |          |
|                    |      | w\] | [Ol | w\] | [Ol | w\] |          |
|                    |      |     | d\] |     | d\] |     |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Market Year Begin  |      | 0   |     | 0   |     | 0   | MM/YYYY  |
|                    |      | 1/2 |     | 1/2 |     | 1/2 |          |
|                    |      | 004 |     | 005 |     | 006 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Area Planted       | 3    | 35  | 35  | 35  | 0   | 35  | (HA)     |
|                    | 5775 | 775 | 900 | 900 |     | 900 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Area Harvested     | 3    | 30  | 30  | 30  | 0   | 31  | (HA)     |
|                    | 0400 | 400 | 800 | 800 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Bearing Trees      | 1    | 12  | 12  | 12  | 0   | 13  | (1000    |
|                    | 2620 | 620 | 800 | 800 |     | 950 | TREES)   |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Non-Bearing Trees  | 2230 | 2   | 2   | 2   | 0   | 2   | (1000    |
|                    |      | 230 | 200 | 200 |     | 230 | TREES)   |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Total Trees        | 1    | 14  | 15  | 15  | 0   | 16  | (1000    |
|                    | 4850 | 850 | 000 | 000 |     | 180 | TREES)   |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Commercial         | 124  | 1   | 1   | 1   | 0   | 1   | (MT)     |
| Production         | 2000 | 242 | 150 | 110 |     | 200 |          |
|                    |      | 000 | 000 | 000 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Non-Comm.          | 1    | 10  | 10  | 10  | 0   | 10  | (MT)     |
| Production         | 0000 | 000 | 000 | 000 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| TOTAL Production   | 125  | 1   | 1   | 1   | 0   | 1   | (MT)     |
|                    | 2000 | 252 | 160 | 120 |     | 210 |          |
|                    |      | 000 | 000 | 000 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| TOTAL Imports      | 15   | 17  | 15  | 15  | 0   | 15  | (MT)     |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| TOTAL SUPPLY       | 125  | 1   | 1   | 1   | 0   | 1   | (MT)     |
|                    | 2015 | 252 | 160 | 120 |     | 210 |          |
|                    |      | 017 | 015 | 015 |     | 015 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Domestic Fresh     | 11   | 118 | 118 | 115 | 0   | 138 | (MT)     |
| Consump            | 8109 | 111 | 015 | 000 |     | 015 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Exports, Fresh     | 73   | 738 | 700 | 635 | 0   | 685 | (MT)     |
| Only               | 8906 | 906 | 000 | 000 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| For Processing     | 39   | 395 | 342 | 370 | 0   | 387 | (MT)     |
|                    | 5000 | 000 | 000 | 015 |     | 000 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| Withdrawal From    | 0    | 0   | 0   | 0   | 0   | 0   | (MT)     |
| Market             |      |     |     |     |     |     |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+
| TOTAL UTILIZATION  | 125  | 1   | 1   | 1   | 0   | 1   | (MT)     |
|                    | 2015 | 252 | 160 | 120 |     | 210 |          |
|                    |      | 017 | 015 | 015 |     | 015 |          |
+--------------------+------+-----+-----+-----+-----+-----+----------+

## 

## 

+---------------------+------------+--------------------+------------+
| ##                  |            |                    |            |
| Export Trade Matrix |            |                    |            |
+---------------------+------------+--------------------+------------+
| Country             | Chile      |                    |            |
+---------------------+------------+--------------------+------------+
| Commodity           | Apples,    |                    |            |
|                     | Fresh      |                    |            |
+---------------------+------------+--------------------+------------+
| Time Period         | Jan-Dec    | Units:             | M.T.       |
+---------------------+------------+--------------------+------------+
| Exports for:        | 2004       |                    | 2005       |
+---------------------+------------+--------------------+------------+
| U.S.                | 118372     | U.S.               | 57201      |
+---------------------+------------+--------------------+------------+
| Others              |            | Others             |            |
+---------------------+------------+--------------------+------------+
| Netherlands         | 88107      | Netherlands        | 80977      |
+---------------------+------------+--------------------+------------+
| Mexico              | 59513      | Saudi Arabia       | 47885      |
+---------------------+------------+--------------------+------------+
| Saudi Arabia        | 52129      | Spain              | 38886      |
+---------------------+------------+--------------------+------------+
| Colombia            | 45113      | Ecuador            | 38179      |
+---------------------+------------+--------------------+------------+
| Ecuador             | 39993      | Colombia           | 37208      |
+---------------------+------------+--------------------+------------+
| Spain               | 39318      | Taiwan             | 34469      |
+---------------------+------------+--------------------+------------+
| Russia              | 37941      | Russia             | 33644      |
+---------------------+------------+--------------------+------------+
| Peru                | 25883      | U.K.               | 28543      |
+---------------------+------------+--------------------+------------+
| U.K.                | 25739      | Peru               | 23436      |
+---------------------+------------+--------------------+------------+
| Italy               | 23677      | Venezuela          | 22272      |
+---------------------+------------+--------------------+------------+
| Total for Others    | 437413     |                    | 385499     |
+---------------------+------------+--------------------+------------+
| Others not Listed   | 183121     |                    | 174666     |
+---------------------+------------+--------------------+------------+
| Grand Total         | 738906     |                    | 617366     |
+---------------------+------------+--------------------+------------+
|                     |            |                    |            |
+---------------------+------------+--------------------+------------+
| Note: Years 2005    |            |                    |            |
| data are for        |            |                    |            |
| January through     |            |                    |            |
| October only.       |            |                    |            |
+---------------------+------------+--------------------+------------+

## 

## 

# Fresh Table Grapes

## 

## Production

Adverse weather conditions with rain and low temperatures during spring
of CY2005, with frost in Region III (Copiapo) and Region IV (Elqui
Valley), are expected to reduce total production of the early varieties
like Perlette. Thompson and Superior also are expected to be affected
significantly. Nevertheless, for other varieties like Red Globe and
Flame, a larger out put than last year is projected to help offset the
reduction in early varieties. Additionally, harvested area keeps
expanding slightly; consequently, total output for the 2006 production
season is expected to be similar as the 2005 season.

Chile produces over 36 varieties of table grapes for export. Thompson
Seedless, Flame Seedless and Ribier account for the bulk of production.
Varieties like Red Globe, Superior Seedless, Crimson and Autumn Royal
have increased significantly in the last few years, as most of the
replanting has been with these varieties. Table Grapes are planted from
Region III (Copiapo) to Region VII (Curico-Talca).

## Crop Area

New plantings have been suspended as economic returns have been affected
by increasing costs, competition and a constant revaluation of the peso.

## Consumption

There are no statistics on fresh table grape consumption. A residual
figure is used to determine fresh consumption and utilization for
processing.

## Trade

Table grape export volumes in 2006 are expected to be similar to the
previous year, as production volumes will be similar and due to adverse
weather conditions in some growing areas the quality of the production
also is expected to be similar to MY2005. As in the past, table grapes
are being imported during the off-season. Due to a weaker dollar, these
imports could increase significantly. However, transport costs remain
high due to low volumes and there is an ample supply of competing low
priced fruits available year around.

+--------------------+-----+-----+-----+-----+-----+-----+---------+
| ## PSD Table       |     |     |     |     |     |     |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Country            | Ch  |     |     |     |     |     |         |
|                    | ile |     |     |     |     |     |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Commodity          | G   |     |     |     | (H  |     |         |
|                    | rap |     |     |     | A)( |     |         |
|                    | es, |     |     |     | MT) |     |         |
|                    | Tab |     |     |     |     |     |         |
|                    | le, |     |     |     |     |     |         |
|                    | Fr  |     |     |     |     |     |         |
|                    | esh |     |     |     |     |     |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
|                    | 2   | R   | 2   | Es  | 2   | Fo  | UOM     |
|                    | 003 | evi | 004 | tim | 005 | rec |         |
|                    |     | sed |     | ate |     | ast |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
|                    | U   | P   | U   | P   | U   | P   |         |
|                    | SDA | ost | SDA | ost | SDA | ost |         |
|                    | Of  | Est | Of  | Est | Of  | Est |         |
|                    | fic | ima | fic | ima | fic | ima |         |
|                    | ial | te\ | ial | te\ | ial | te\ |         |
|                    | \   | [Ne | \   | [Ne | \   | [Ne |         |
|                    | [Ol | w\] | [Ol | w\] | [Ol | w\] |         |
|                    | d\] |     | d\] |     | d\] |     |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Market Year Begin  |     | 0   |     | 0   |     | 0   | MM/YYYY |
|                    |     | 1/2 |     | 1/2 |     | 1/2 |         |
|                    |     | 004 |     | 005 |     | 006 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Area Planted       | 45  | 45  | 47  | 47  | 0   | 47  | (HA)    |
|                    | 490 | 490 | 720 | 720 |     | 727 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Area Harvested     | 40  | 40  | 42  | 42  | 0   | 42  | (HA)    |
|                    | 800 | 800 | 200 | 200 |     | 400 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Commercial         | 1   | 1   | 1   | 1   | 0   | 1   | (MT)    |
| Production         | 070 | 070 | 100 | 100 |     | 100 |         |
|                    | 000 | 000 | 000 | 000 |     | 000 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Non-Comm.          | 5   | 5   | 5   | 5   | 0   | 5   | (MT)    |
| Production         | 000 | 000 | 000 | 000 |     | 000 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| TOTAL Production   | 1   | 1   | 1   | 1   | 0   | 1   | (MT)    |
|                    | 075 | 075 | 105 | 105 |     | 105 |         |
|                    | 000 | 000 | 000 | 000 |     | 000 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| TOTAL Imports      | 46  | 46  | 50  | 50  | 0   | 50  | (MT)    |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| TOTAL SUPPLY       | 1   | 1   | 1   | 1   | 0   | 1   | (MT)    |
|                    | 075 | 075 | 105 | 105 |     | 105 |         |
|                    | 046 | 046 | 050 | 050 |     | 050 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Domestic Fresh     | 115 | 115 | 125 | 115 | 0   | 115 | (MT)    |
| Consump            | 546 | 546 | 000 | 000 |     | 000 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Exports, Fresh     | 692 | 692 | 730 | 750 | 0   | 750 | (MT)    |
| Only               | 916 | 916 | 000 | 000 |     | 000 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| For Processing     | 266 | 266 | 250 | 240 | 0   | 240 | (MT)    |
|                    | 584 | 584 | 050 | 050 |     | 050 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| Withdrawal From    | 0   | 0   | 0   | 0   | 0   | 0   | (MT)    |
| Market             |     |     |     |     |     |     |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+
| TOTAL UTILIZATION  | 1   | 1   | 1   | 1   | 0   | 1   | (MT)    |
|                    | 075 | 075 | 105 | 105 |     | 105 |         |
|                    | 046 | 046 | 050 | 050 |     | 050 |         |
+--------------------+-----+-----+-----+-----+-----+-----+---------+

+---------------------+------------+--------------------+------------+
| ##                  |            |                    |            |
| Export Trade Matrix |            |                    |            |
+---------------------+------------+--------------------+------------+
| Country             | Chile      |                    |            |
+---------------------+------------+--------------------+------------+
| Commodity           | Grapes,    |                    |            |
|                     | Table,     |                    |            |
|                     | Fresh      |                    |            |
+---------------------+------------+--------------------+------------+
| Time Period         | Jan-Dec    | Units:             | M.T.       |
+---------------------+------------+--------------------+------------+
| Exports for:        | 2004       |                    | 2005       |
+---------------------+------------+--------------------+------------+
| U.S.                | 406582     | U.S.               | 398211     |
+---------------------+------------+--------------------+------------+
| Others              |            | Others             |            |
+---------------------+------------+--------------------+------------+
| Netherlands         | 60834      | Netherlands        | 65703      |
+---------------------+------------+--------------------+------------+
| U.K.                | 43862      | U.K.               | 49995      |
+---------------------+------------+--------------------+------------+
| Mexico              | 30862      | Russia             | 25607      |
+---------------------+------------+--------------------+------------+
| Hong Kong           | 20512      | Mexico             | 25537      |
+---------------------+------------+--------------------+------------+
| Russia              | 14618      | Hong Kong          | 19703      |
+---------------------+------------+--------------------+------------+
| Spain               | 11758      | Spain              | 15943      |
+---------------------+------------+--------------------+------------+
| Taiwan              | 10178      | So. Korea          | 11136      |
+---------------------+------------+--------------------+------------+
| Germany             | 9286       | Taiwan             | 8931       |
+---------------------+------------+--------------------+------------+
| Japan               | 9131       | Japan              | 8001       |
+---------------------+------------+--------------------+------------+
| So. Korea           | 8462       | Germany            | 7033       |
+---------------------+------------+--------------------+------------+
| Total for Others    | 219503     |                    | 237589     |
+---------------------+------------+--------------------+------------+
| Others not Listed   | 66831      |                    | 64162      |
+---------------------+------------+--------------------+------------+
| Grand Total         | 692916     |                    | 699962     |
+---------------------+------------+--------------------+------------+
|                     |            |                    |            |
+---------------------+------------+--------------------+------------+
| Note: Years 2005    |            |                    |            |
| data are for        |            |                    |            |
| January through     |            |                    |            |
| October only.       |            |                    |            |
+---------------------+------------+--------------------+------------+

# Fresh Pears

## 

## 

## Production

Pear production levels were similar for MY2004 and MY2005. For MY2006 a
slightly larger harvest is expected, as the pear crop will benefit from
positive growing conditions during the spring of CY2005. The latest
planting statistics show that total planted area to pears continues to
fall. However, industry sources indicate that while replanting old
orchards, producers are increasing planting densities, thus maintaining
present total production levels in the coming years.

There are over 36 pear varieties grown in Chile. Packam\'s Triumph and
Beurre Bosc make up over 60 percent of Chile\'s exports. Other important
varieties in Chile are Abate Fetel, Coscia, Summer Bartlets and D'Anjou.

## Consumption

As with most other Chilean fruits, mostly export rejects enter domestic
marketing channels. Pears are mostly consumed fresh, although some are
utilized for processing.

## Trade

Argentina is Chile's main competitor for pear exports, principally to
the European Union, which is also Chile's main export market. Close to
50 percent of exports are destined for the EU. As a result Chilean
exports will depend on fluctuations in the Argentinean production.
Exports levels in 2006 are expected to be very similar to 2005.

+---------------------+-----+-----+-----+-----+-----+-----+----------+
| ## PSD Table        |     |     |     |     |     |     |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Country             | Ch  |     |     |     |     |     |          |
|                     | ile |     |     |     |     |     |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Commodity           | Pea |     |     |     | (HA |     |          |
|                     | rs, |     |     |     | )(1 |     |          |
|                     | Fr  |     |     |     | 000 |     |          |
|                     | esh |     |     |     | T   |     |          |
|                     |     |     |     |     | REE |     |          |
|                     |     |     |     |     | S)( |     |          |
|                     |     |     |     |     | MT) |     |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
|                     | 2   | R   | 2   | Es  | 2   | Fo  | UOM      |
|                     | 003 | evi | 004 | tim | 005 | rec |          |
|                     |     | sed |     | ate |     | ast |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
|                     | U   | P   | U   | P   | U   | P   |          |
|                     | SDA | ost | SDA | ost | SDA | ost |          |
|                     | Of  | Est | Of  | Est | Of  | Est |          |
|                     | fic | ima | fic | ima | fic | ima |          |
|                     | ial | te\ | ial | te\ | ial | te\ |          |
|                     | \   | [Ne | \   | [Ne | \   | [Ne |          |
|                     | [Ol | w\] | [Ol | w\] | [Ol | w\] |          |
|                     | d\] |     | d\] |     | d\] |     |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Market Year Begin   |     | 0   |     | 0   |     | 0   | MM/YYYY  |
|                     |     | 1/2 |     | 1/2 |     | 1/2 |          |
|                     |     | 004 |     | 005 |     | 006 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Area Planted        | 10  | 10  | 10  | 9   | 0   | 9   | (HA)     |
|                     | 120 | 120 | 120 | 950 |     | 850 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Area Harvested      | 9   | 9   | 9   | 9   | 0   | 9   | (HA)     |
|                     | 980 | 980 | 980 | 080 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Bearing Trees       | 4   | 4   | 4   | 4   | 0   | 5   | (1000    |
|                     | 830 | 830 | 830 | 830 |     | 049 | TREES)   |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Non-Bearing Trees   | 115 | 115 | 115 | 115 | 0   | 110 | (1000    |
|                     |     |     |     |     |     |     | TREES)   |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Total Trees         | 4   | 4   | 4   | 4   | 0   | 5   | (1000    |
|                     | 945 | 945 | 945 | 945 |     | 159 | TREES)   |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Commercial          | 255 | 255 | 255 | 255 | 0   | 257 | (MT)     |
| Production          | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Non-Comm.           | 2   | 2   | 2   | 2   | 0   | 2   | (MT)     |
| Production          | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| TOTAL Production    | 257 | 257 | 257 | 257 | 0   | 259 | (MT)     |
|                     | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| TOTAL Imports       | 0   | 0   | 0   | 0   | 0   | 0   | (MT)     |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| TOTAL SUPPLY        | 257 | 257 | 257 | 257 | 0   | 259 | (MT)     |
|                     | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Domestic Fresh      | 71  | 71  | 71  | 71  | 0   | 72  | (MT)     |
| Consump             | 525 | 525 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Exports, Fresh Only | 123 | 123 | 124 | 127 | 0   | 127 | (MT)     |
|                     | 475 | 475 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| For Processing      | 62  | 62  | 62  | 59  | 0   | 60  | (MT)     |
|                     | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| Withdrawal From     | 0   | 0   | 0   | 0   | 0   | 0   | (MT)     |
| Market              |     |     |     |     |     |     |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+
| TOTAL UTILIZATION   | 257 | 257 | 257 | 257 | 0   | 259 | (MT)     |
|                     | 000 | 000 | 000 | 000 |     | 000 |          |
+---------------------+-----+-----+-----+-----+-----+-----+----------+

+---------------------+------------+--------------------+------------+
| ##                  |            |                    |            |
| Export Trade Matrix |            |                    |            |
+---------------------+------------+--------------------+------------+
| Country             | Chile      |                    |            |
+---------------------+------------+--------------------+------------+
| Commodity           | Pears,     |                    |            |
|                     | Fresh      |                    |            |
+---------------------+------------+--------------------+------------+
| Time Period         | Jan-Dec    | Units:             | M.T.       |
+---------------------+------------+--------------------+------------+
| Exports for:        | 2004       |                    | 2005       |
+---------------------+------------+--------------------+------------+
| U.S.                | 22223      | U.S.               | 22684      |
+---------------------+------------+--------------------+------------+
| Others              |            | Others             |            |
+---------------------+------------+--------------------+------------+
| Netherlands         | 26414      | Netherlands        | 29099      |
+---------------------+------------+--------------------+------------+
| Italy               | 12841      | Italy              | 11199      |
+---------------------+------------+--------------------+------------+
| Colombia            | 8222       | Colombia           | 9836       |
+---------------------+------------+--------------------+------------+
| Russia              | 7841       | Spain              | 7256       |
+---------------------+------------+--------------------+------------+
| Spain               | 7000       | Ecuador            | 6318       |
+---------------------+------------+--------------------+------------+
| Peru                | 4456       | Peru               | 6244       |
+---------------------+------------+--------------------+------------+
| Ecuador             | 3685       | Venezuela          | 5822       |
+---------------------+------------+--------------------+------------+
| Portugal            | 3645       | Germany            | 4385       |
+---------------------+------------+--------------------+------------+
| Brazil              | 3325       | Russia             | 3528       |
+---------------------+------------+--------------------+------------+
| Venezuela           | 3279       | Saudi Arabia       | 2445       |
+---------------------+------------+--------------------+------------+
| Total for Others    | 80708      |                    | 86132      |
+---------------------+------------+--------------------+------------+
| Others not Listed   | 20544      |                    | 17611      |
+---------------------+------------+--------------------+------------+
| Grand Total         | 123475     |                    | 126427     |
+---------------------+------------+--------------------+------------+
|                     |            |                    |            |
+---------------------+------------+--------------------+------------+
| Note: Years 2005    |            |                    |            |
| data are for        |            |                    |            |
| January through     |            |                    |            |
| October only.       |            |                    |            |
+---------------------+------------+--------------------+------------+

# Concentrated Apple Juice

## Production

Chile's production of apple juice concentrate (AJC) primarily reflects
foreign demand. Although production fell in MY2005 (Jan-Dec, 2005), due
to the reduced availability of apples for processing, total exports were
greater than the previous year and greater than expected. Industry
sources indicate this occurred because a large amount of AJC was
exported during the last month of 2004 but registered in 2005. This
explains the large increment observed in ending stocks in 2004. Although
it is difficult to forecast production levels for MY2006, apple
production is expected to increase due to an increase in the
availability of apples for processing. Therefore, production volumes of
AJC probably will be larger then in MY2005.

Although the apple juice industry mainly processes export rejects, the
AJC industry has been encouraging farmers to increase production of
sour-type apples, as well as to expand new plantings of apple varieties
mainly for juice purposes. Reportedly the industry is contacting
producers directly to obtain apple supplies in an effort of reduce the
use of export rejects.

## Consumption

Only a small amount of AJC, principally single‑strength juice, is
consumed domestically. AJC competes with a variety of fresh and
processed juices in Chile.

## Trade

The United States is Chile\'s largest AJC export market, accounting for
over 70 percent of total export sales. Other markets of increasing
importance are Japan, Mexico and Canada. Latin American export markets
also are growing fast. Levels of AJC exports will depend upon foreign
demand and the ability of the industry to compete in international
markets against other suppliers such as China.

+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| ## PSD Table      |     |     |     |     |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Country           | Ch  |     |     |     |     |     |           |
|                   | ile |     |     |     |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Commodity         | Ap  |     |     |     | (   |     |           |
|                   | ple |     |     |     | MT) |     |           |
|                   | Jui |     |     |     |     |     |           |
|                   | ce, |     |     |     |     |     |           |
|                   | Con |     |     |     |     |     |           |
|                   | cen |     |     |     |     |     |           |
|                   | tra |     |     |     |     |     |           |
|                   | ted |     |     |     |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
|                   | 2   | R   | 2   | Es  | 2   | Fo  | UOM       |
|                   | 003 | evi | 004 | tim | 005 | rec |           |
|                   |     | sed |     | ate |     | ast |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
|                   | U   | P   | U   | P   | U   | P   |           |
|                   | SDA | ost | SDA | ost | SDA | ost |           |
|                   | Of  | Est | Of  | Est | Of  | Est |           |
|                   | fic | ima | fic | ima | fic | ima |           |
|                   | ial | te\ | ial | te\ | ial | te\ |           |
|                   | \   | [Ne | \   | [Ne | \   | [Ne |           |
|                   | [Ol | w\] | [Ol | w\] | [Ol | w\] |           |
|                   | d\] |     | d\] |     | d\] |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Market Year Begin |     | 0   |     | 0   |     | 0   | MM/YYYY   |
|                   |     | 1/2 |     | 1/2 |     | 1/2 |           |
|                   |     | 004 |     | 005 |     | 006 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Deliv. To         | 395 | 395 | 342 | 370 | 0   | 387 | (MT)      |
| Processors        | 000 | 000 | 000 | 015 |     | 000 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Beginning Stocks  | 453 | 453 | 353 | 4   | 653 | 229 | (MT)      |
|                   |     |     |     | 429 |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Production        | 59  | 59  | 51  | 55  | 0   | 58  | (MT)      |
|                   | 000 | 000 | 500 | 400 |     | 000 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Imports           | 0   | 0   | 0   | 0   | 0   | 0   | (MT)      |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| TOTAL SUPPLY      | 59  | 59  | 51  | 59  | 653 | 58  | (MT)      |
|                   | 453 | 453 | 853 | 829 |     | 229 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Exports           | 58  | 54  | 50  | 59  | 0   | 57  | (MT)      |
|                   | 600 | 424 | 700 | 000 |     | 100 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Domestic          | 500 | 600 | 500 | 600 | 0   | 600 | (MT)      |
| Consumption       |     |     |     |     |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| Ending Stocks     | 353 | 4   | 653 | 229 | 0   | 529 | (MT)      |
|                   |     | 429 |     |     |     |     |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+
| TOTAL             | 59  | 59  | 51  | 59  | 0   | 58  | (MT)      |
| DISTRIBUTION      | 453 | 453 | 853 | 829 |     | 229 |           |
+-------------------+-----+-----+-----+-----+-----+-----+-----------+

+----------------------+-------------+------------------+-------------+
| ##                   |             |                  |             |
|  Export Trade Matrix |             |                  |             |
+----------------------+-------------+------------------+-------------+
| Country              | Chile       |                  |             |
+----------------------+-------------+------------------+-------------+
| Commodity            | Apple       |                  |             |
|                      | Juice,      |                  |             |
|                      | C           |                  |             |
|                      | oncentrated |                  |             |
+----------------------+-------------+------------------+-------------+
| Time Period          | Jan-Dec     | Units:           | M.T.        |
+----------------------+-------------+------------------+-------------+
| Exports for:         | 2004        |                  | 2005        |
+----------------------+-------------+------------------+-------------+
| U.S.                 | 46160       | U.S.             | 33453       |
+----------------------+-------------+------------------+-------------+
| Others               |             | Others           |             |
+----------------------+-------------+------------------+-------------+
| Japan                | 5885        | Japan            | 7232        |
+----------------------+-------------+------------------+-------------+
| Canada               | 1026        | Mexico           | 1527        |
+----------------------+-------------+------------------+-------------+
| Mexico               | 994         | Canada           | 1095        |
+----------------------+-------------+------------------+-------------+
| Ecuador              | 63          | So. Korea        | 255         |
+----------------------+-------------+------------------+-------------+
| Dominican Rep.       | 61          | Peru             | 92          |
+----------------------+-------------+------------------+-------------+
| Costa Rica           | 42          | Costa Rica       | 89          |
+----------------------+-------------+------------------+-------------+
| Paraguay             | 38          | Jamaica          | 81          |
+----------------------+-------------+------------------+-------------+
| Peru                 | 38          | Dominican Rep.   | 77          |
+----------------------+-------------+------------------+-------------+
| Guatemala            | 20          | Ecuador          | 56          |
+----------------------+-------------+------------------+-------------+
| Panama               | 20          | Nicaragua        | 39          |
+----------------------+-------------+------------------+-------------+
| Total for Others     | 8187        |                  | 10543       |
+----------------------+-------------+------------------+-------------+
| Others not Listed    | 77          |                  | 174         |
+----------------------+-------------+------------------+-------------+
| Grand Total          | 54424       |                  | 44170       |
+----------------------+-------------+------------------+-------------+
|                      |             |                  |             |
+----------------------+-------------+------------------+-------------+
| Note: Years 2005     |             |                  |             |
| data are for January |             |                  |             |
| through October      |             |                  |             |
| only.                |             |                  |             |
+----------------------+-------------+------------------+-------------+