Chile’s Cherry Exports to China Surge

Summary

Chilean Ambassador to China Mauricio Hurtado said that driven by surging Chinese market demand and global cold chain logistics development, Chile's cherry exports to China in 2023-24 are expected to account for 92% of its total cherry exports, up from 88% in the previous season. Recent weeks have seen a significant increase in exports, totalling 365,968 tonnes, compared to 362,607 tonnes in 2022-23. Cherries have become Chile's second-largest export to China after copper, with annual exports exceeding US$2 billion.

Hurtado noted that trade expansion benefits both economies and creates opportunities to introduce new varieties and a broader range of products to China. Peaches will be launched in China this year, and Coho salmon exports from Chile will follow. Additionally, Chile has resumed exports of poultry and chicken products to China after declaring it free of avian influenza.

To boost exports, Chile's Agricultural and Livestock Service (SAG) has worked with Shanghai Customs to develop a joint plan to speed up the entry of fresh fruit into Shanghai port, particularly for containers undergoing cold treatment in transit to control fruit fly. China's General Administration of Customs approved a pilot programme for fresh cherries in November 2023, with the first cold-treated containers arriving in Shanghai on 21 January. It currently takes 28 days from Chile to Shanghai.

Driven by the China-Chile Free Trade Agreement and the Belt and Road Initiative, bilateral commercial relations will continue to develop, diversifying into areas such as technical cooperation and service trade. Ding Lixin, a researcher at the Chinese Academy of Agricultural Sciences, said China's demand for beef, lamb, pork, fruit, wine and dairy products will create opportunities for major exporters including Spain, Ireland, Chile, Argentina and the US. In 2023, China expanded market access for imports of some agricultural products from 51 countries and regions, with customs signing 156 cooperation documents with foreign partners, 84 of which related to Belt and Road partners.

The success of Chilean cherry exports is inseparable from the deep cooperation between the two countries in cold chain logistics, inspection and quarantine, and customs clearance facilitation, which have effectively shortened transit times and maintained fruit quality. Ambassador Hurtado emphasised that Chile will continue to diversify its export categories to China, with new products like peaches and salmon expected to quickly capture market share. Meanwhile, the joint plan between Chile and Shanghai Customs offers a replicable model for agricultural exports from other countries, particularly cold treatment solutions for phytosanitary issues like fruit fly.

Researcher Ding Lixin pointed out that China's market opening presents huge opportunities for global agricultural exporters, but competition is intensifying, and businesses need to focus on changing Chinese consumer preferences and the rapid growth of e-commerce channels. Overall, the growth in Chile's cherry trade is a microcosm of deepening bilateral relations and offers lessons for other agricultural exporting countries.

Commentary

The strong growth of Chilean cherry exports to China is both an inspiration and a caution for New Zealand SME owners. On one hand, it validates the huge potential of China's premium fruit market—Chile's cherry exports exceed US$2 billion annually, with a rising share, proving that if product quality is excellent and cold chains are efficient, access to the Chinese market is sustainable. New Zealand, as an exporter known for quality agricultural products (such as kiwifruit, apples, avocados, lamb, dairy products, etc.), can certainly learn from Chile's experience: actively participate in China Customs' trade facilitation pilots (e.g., fast clearance for cold-treated containers), leverage cooperation channels under the China-Chile FTA and the Belt and Road Initiative, and strengthen alignment with Chinese authorities on inspection and quarantine mutual recognition and cold chain logistics.

In particular, the prevalence of e-commerce allows New Zealand businesses to bypass intermediaries and reach Chinese consumers directly—unthinkable a decade ago, but now the norm. On the other hand, competition cannot be ignored: Chile has not only consolidated its cherry position but also plans to promote new products like peaches and salmon, and has resumed poultry exports. This means New Zealand products will face more competing items from the Southern Hemisphere in the Chinese market.

For instance, New Zealand's summer fruit season overlaps with Chile's; without differentiation in varieties, brand storytelling (e.g., 100% Pure New Zealand), and sustainability certifications, market share may be eroded. Additionally, the article notes that China expanded agricultural market access for 51 countries in 2023; although New Zealand already enjoys FTA advantages, other suppliers (e.g., Spain, Ireland, Argentina) are also actively positioning, and the 'crowding effect' of market access could push up marketing costs. For SMEs, two points are critical: first, take advantage of supply chain optimisation opportunities from China's Belt and Road cooperation, such as reducing costs via China-Europe rail or dedicated cold-chain sea routes; second, focus on niche markets like organic, functional fruits, or customised packaging to avoid direct price wars.

The Chilean cherry case also reminds us that trade facilitation measures (like Shanghai Customs' fast clearance for cold-treated containers) can significantly boost competitiveness; New Zealand businesses should proactively contact NZTE or China Customs to inquire about similar pilot programmes. In summary, the core signal from this news is: Chinese consumers' appetite for high-quality imported fruit is far from saturated, but competition has shifted from 'availability' to 'excellence'. If New Zealand SMEs want a slice, they must excel in supply chain efficiency, product innovation, and brand localisation.

Keywords: Chilean cherries, exports to China, market demand, cold chain logistics, trade facilitation, China-Chile FTA, agricultural market access, fruit trade, competitive opportunities, New Zealand SMEs

Source: NetEase